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(1 point) Mr. Weber purchases a $5000 bond, that pays interest at j1j1 = 12% and is redeemable at 95 in 15 years. He bought
(1 point) Mr. Weber purchases a $5000 bond, that pays interest at j1j1 = 12% and is redeemable at 95 in 15 years. He bought the bond at a price to yield j1j1 = 6.25% if held until maturity. After 6 years, he sells the bond to another investor who will yield j1j1 = 4.35% if held until maturity. Approximate Mr. Weber's yield on his investment over the 6-year period, using method of averages?
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