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Oriole, Inc. has four-year bonds outstanding that pay a coupon rate of 8.0 percent and make coupon payments semiannually. If these bonds are currently selling

Oriole, Inc. has four-year bonds outstanding that pay a coupon rate of 8.0 percent and make coupon payments semiannually. If these bonds are currently selling $916.92.

What is the yield to maturity that an investor can expect to earn on these bonds? Assume face value is $1000.

What is the effective annual yield?

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