Effective Yield – Smallest (Topic 5 #9),”1. Assume PV of ($100)2. PMT = 03. N = Term (Annual=1, Quarterly=4, Monthly=12
Daily=3654. APR = Given rounded to tenths (i.e. 20.7)Then:5. Divide APR by N to get i/YTM6. Solve for FV7. Divide FV by 100 the subtract 1 to get Effective Yield (EY)”