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Mr. Weber purchases a $10000 bond, that pays interest at j4j4 = 4.5% and is redeemable at 95 in 14 years. He bought the bond
Mr. Weber purchases a $10000 bond, that pays interest at j4j4 = 4.5% and is redeemable at 95 in 14 years. He bought the bond at a price to yield j4j4 = 8.25% if held until maturity. After 4 years, he sells the bond to another investor who will yield j4j4 = 6.65% if held until maturity. Approximate Mr. Weber's yield on his investment over the 4-year period, using method of averages?
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