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A one year zero coupon bond has an effective annual rate of 11%. A three year zero coupon bond has an effective annual rate of
| A one year zero coupon bond has an effective annual rate of 11%. A three year zero coupon bond has an effective annual rate of 14%. If a 3 year coupon-bearing bond that pays coupons of 14% annually has a yield of 13.6%, what is the effective annual rate of a two year zero coupon bond? |
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Managerial Economics and Organizational Architecture
Authors: James Brickley, Clifford W. Smith Jr., Jerold Zimmerman
6th edition
73523143, 73523149, 978-0073523149
