Suppose you purchased a $3000$ par value, $5$ year $10\%$ bond for $2500.$ Then you reinvest all coupon payments at a nominal rate of $6\%$ convertible monthly. Calculate his effective annual yield rate over the $5-$year period?

Answer rating: 100% (QA)

To calculate the effective annual yield rate over the 5year period for the given bond purchase we ca... View the full answer