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A 15-year bond is paying coupons at nominal interest rate of 7% payable semiannually. The face value is 1000 and the nominal yield rate convertible
A 15-year bond is paying coupons at nominal interest rate of 7% payable semiannually. The face value is 1000 and the nominal yield rate convertible semiannually is quoted as 8%. The coupons are reinvested at a nominal annual rate of 6% compounded semiannually. Determine the purchasers annual effective yield rate over the 15-year period.
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