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Mr. A purchases a $10,000 bond with semi-annual coupons at j2 = 8%, maturing at par in 5 years for $10,415.83. Mr. A immediately sells
Mr. A purchases a $10,000 bond with semi-annual coupons at j2 = 8%, maturing at par in 5 years for $10,415.83. Mr. A immediately sells the bond coupons and the remaining strip bond. He sells the coupons for $3500.83. After he has sold both pieces, he has made a total profit of $525.94. At what yield rate, j2, did he sell the strip bond at?
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