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Assume a zero-coupon bond that sells for $305 will mature in 20 years at $2,050. Use Appendix B for an approximate answer but calculate your
Assume a zero-coupon bond that sells for $305 will mature in 20 years at $2,050. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.
What is the effective yield to maturity? (Assume annual compounding. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Effective yield to maturity ___________%
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