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An investor purchased a $60,000 bond with coupons payable at j2 = 6% on March 1, 2020 (first coupon was due on September 1, 2020)
An investor purchased a $60,000 bond with coupons payable at j2 = 6% on March 1, 2020 (first coupon was due on September 1, 2020) for $55,200. He then sold this bond $58,200 on March 1, 2025. Using the method of averages, what is the investor's yield rate, j? A. 7.41% B. 7.67% C. 5.34% D. 7.52%
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