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Don makes a one time investment in the following way: he purchases a 3 0 year bond with face value F , semianmual coupons, and
Don makes a one time investment in the following way: he purchases a year bond with face value F semianmual coupons, and with a coupon rate and a yield rate Immediately after receiving his coupons, he invests his coupons into an account earning a nominal semiannual interest rate of If the price of the bond is $ then find F and find Don's equivalent effective annual interest rate for the year period.
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