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Donna Clark is planning to buy 10-year zero coupon bonds issued by the U.S Treasury. If these bonds have a face value of $1000 and

Donna Clark is planning to buy 10-year zero coupon bonds issued by the U.S Treasury. If these bonds have a face value of $1000 and are currently selling $404.57, what is the effective annual yield? Assume that interest compounds semiannually on similar coupon pay bonds.

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