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A bond of a company are presently selling at a premium of 8% against its face value as well as the maturity value of Rs.
A bond of a company are presently selling at a premium of 8% against its face value as well as the maturity value of Rs. 100. The current yield on the bonds is 8.33%. The coupons are paid semi-annually. If the bonds are to mature 3 years hence, what should be the annualized yield to an investor of today by the approximation method?
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