If an investment pays an annual interest rate r compounded m times in a year, then the effective annual yield is calculated as:
[tex]r_e=\left(1+\frac{r}{m}\right)^m-1[/tex]An investment pays r = 9% = 0.09.
There are m = 48 business weeks in a year.
Calculating:
[tex]r_e=\left(1+\frac{0.09}{48}\right)^{48}-1[/tex]effective annual yield = 0.0941
