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7 - 3 2 Mike buys a corporate bond with a face value of A $ 1 0 0 0 for $ 8 0 0
Mike buys a corporate bond with a face value of
A $ for $ The bond matures in years and
pays a coupon interest rate of Interest is paid
every quarter.
a Determine the effective rate of return if Mike
holds the bond to maturity.
b What effective interest rate will Mike get if he
keeps the bond for only years and sells it for
$
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