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A $100 par value 10% preferred stock with semiannual dividends is bought to yield 8% convertible semiannually into perpetuity. The preferred stock is actually called

A $100 par value 10% preferred stock with semiannual dividends is bought to yield 8% convertible semiannually into perpetuity.

The preferred stock is actually called at the end of 10 years at par value.

Find the nominal yield rate convertible semiannually that an investor would actually earn over the 10-year period.

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