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A comment on Why I'm Worried About the Repo Market. Parent comment
In this case where x = 1% (or .01) they're so close it almost doesn't matter. For x = 10% it's a lot clearer.
That said, it's also not equal to (1 + y) ^ 12, where y is whatever value is needed to have (1 + y) ^ 12 = 1 + x.
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In this case where x = 1% (or .01) they're so close it almost doesn't matter. For x = 10% it's a lot clearer.
That said, it's also not equal to (1 + y) ^ 12, where y is whatever value is needed to have (1 + y) ^ 12 = 1 + x.