I understand effective annual rates, but how do you calculate the quarterly compounded rate that equates to an annual compounded rate.
For ex ) a 5% compound annual rate is equal to the continuously compounded rate of 4.879% (ln(1.05)). So 5% compounded annually is equal to 4.879% compounded continuously.
My question: how do you you find the quarterly rate that equates to the 5% compound annual rate ??
Thanks
