i did not understand the 0.75 years….. as if i put n as 0.75 then the i/y should be coming for 0.75 years how is it an eay ?

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sanket jain

Asked: May 10, 2024In: Quants (CFA L1)

QUESTION ON TVM

WHY 0.75 USED TO CALCULATE THE EAY? AS 0.75 YR IS 9/12 SO THE RATE SHOULD COME FOR THIS PERIOD RIGHT AND NOT FOR THE FULL YEAR?