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A 6% bond maturing in 8 years with semiannual coupons to yield 5% convertible semiannually is to be replaced by a 5.5% bond yielding the
A 6% bond maturing in 8 years with semiannual coupons to yield 5% convertible semiannually is to be replaced by a 5.5% bond yielding the same return. In how many years should the new bond mature? ( Both bonds have the same price, yield rate and face amount).
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