Re: jnu

Posted by neha on May 10, 2012; 5:40am
URL: http://discussion-forum.276.s1.nabble.com/jnu-tp7463007p7545571.html

Hi Kratika,,, i guess yes,, these two approaches are definitely different, although in this question the conclusion that we draw using either of them happens to be the same,,,
I think if u are dividing the rate of interest by 2,, it means the rate is effective rate of interest per half year ,,, so the present value equation becomes
  [55/1.055^1] +  [55/1.055^2]