Answer:
semiannual 1.42%
yearly 2.85%
Explanation:
Those are annual rate so we need to determinate the 6-month rate
The annual rate times the semiannual rate will be equal to the 18 months rate
[tex](1+0.0195)(1+r)=(1.0225)^{3/2}[/tex]
[tex]\frac{1.0225^{3/2} }{1.0195} - 1 = r[/tex]
r = 0.01416296 = 1.42%
If we want to express it annually:
1.0142^2 - 1 = r = 2.85%
