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Exercies 6: Abdulaziz buys 10-year bond with the following characteristic: The face value is 1000 and the redemption value is 1200. The coupon rate is
Exercies 6: Abdulaziz buys 10-year bond with the following characteristic: The face value is 1000 and the redemption value is 1200. The coupon rate is 8% paid semiannually The yield rate is 6% convertible semiannually As Abdulaziz receives each coupon payment, he immediately puts the money into an account earning interest at an annual effective rate of At the end of 10 years, immediately after Abdulaziz receives the final coupon payment and the redemption value of the bond, Abdulaziz has earned an annual effective yield of 9% on his investment in the bond. Calculate Exercies 6: Abdulaziz buys 10-year bond with the following characteristic: The face value is 1000 and the redemption value is 1200. The coupon rate is 8% paid semiannually The yield rate is 6% convertible semiannually As Abdulaziz receives each coupon payment, he immediately puts the money into an account earning interest at an annual effective rate of i. At the end of 10 years, immediately after Abdulaziz receives the final coupon payment and the redemption value of the bond, Abdulaziz has earned an annual effective yield of 9% on his investment in the bond. Calculate
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