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BHP plans to issue a five-year bond with a face value of AUD200 million. The bond will have 5.4% coupon, which will be paid semi-annually,
BHP plans to issue a five-year bond with a face value of AUD200 million. The bond will have 5.4% coupon, which will be paid semi-annually, and the company needs to pay the issuance fee and expenses of AUD740,000.
What is the effective interest rate of this bond issuance? Please show it as an annual yield!
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