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Bob buys a 3 year bond , redeemable at par, with a face amount of $100. Interest payments are to be made at a rate
Bob buys a 3 year bond , redeemable at par, with a face amount of $100. Interest payments are to be made at a rate of 12% convertible semi-annually, and tax on interest is 8%. if $103.45 was paid for this bond, calculate the net effective annual yield.
Answer is 9.921%, please show all work. No excel spreadsheets.
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