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Carol and Darrell purchase different bonds for the same price P . Carol purchases a zero - coupon bond with a redemption value of $

Carol and Darrell purchase different bonds for the same price P. Carol purchases a zero-
coupon bond with a redemption value of $3000, a duration of 6 years, and an effective annual
yield rate of 5%. Darrell purchases a 10-year bond with a face value $800, an effective annual
coupon rate of r, and a redemption value of $2500, that is priced to earn an effective annual
yield rate of 4%. Calculate r.
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