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An investor purchased an NCD a year ago in the secondary market for $980,000. He redeems it today and receives $1,000,000. He also receives interest
An investor purchased an NCD a year ago in the secondary market for $980,000. He redeems it today and receives $1,000,000. He also receives interest of $30,000. The investor's annualized yield on this investment is
a. | 2.0 percent. |
b. | 5.10 percent. |
c. | 5.00 percent. |
d. | 2.04 percent. |
IF someone could give me the answer as well as the written out solution it would be much appreciated! thanks!
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