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Christie DeLeon purchased a ten-year $1,000 bond with semiannual coupon for $982. The bond had a $1,100 redemption payment at maturity, a nominal coupon rate
Christie DeLeon purchased a ten-year $1,000 bond with semiannual coupon for $982. The bond had a $1,100 redemption payment at maturity, a nominal coupon rate of 7% for the first five years, and a nominal coupon rate of q% for the final five years. Christie calculated that her annual effective yield for the ten-year period was 7.35%. Find q.
Please show all steps and set up a formula. No Excel spreadsheets please. Thank you.
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