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A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 7%. Find the bond equivalent and effective
A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 7%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Bond Prices Bond Equivalent Annual Yield to Maturity 7.88% Effective Annual Yield to Maturity a. $ 940 8.03 X % b. $ 1,000 7.00 % 7.12 X % 6.56 X % C. $ 1,040 6.45 %
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