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Electrolex, Inc., has four-year bonds outstanding that pay a coupon rate of 6.5 percent and make coupon payments semiannually. If these bonds are currently selling

Electrolex, Inc., has four-year bonds outstanding that pay a coupon rate of 6.5 percent and make coupon payments semiannually. If these bonds are currently selling at $912.89.

a. What is the yield to maturity that an investor can expect to earn on these bonds?

b. What is the effective annual yield?

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