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A 1,000 20-year 8% bond with semiannual coupons is purchased for 1,014. The redemption value is 1,000. The coupons are reinvested at a nominal annual

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A 1,000 20-year 8% bond with semiannual coupons is purchased for 1,014. The redemption value is 1,000. The coupons are reinvested at a nominal annual rate of 6%, compounded semiannually. Determine the purchaser's annual effective yield rate over the 20 year period (7.12%) 3

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