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Novak Limited has bonds outstanding that will mature in 7 years. The bonds have a face value of $1,000. The bonds pay interest semi-annually and
Novak Limited has bonds outstanding that will mature in 7 years. The bonds have a face value of $1,000. The bonds pay interest semi-annually and have a coupon rate of 5.1 percent. If the bonds are currently selling at $899.78,
i). what is the yield to maturity that an investor who buys them today can expect to earn? (Round answer to 1 decimal place)
ii). What is the effective annual yield? (Round answer to 2 decimal places)
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