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Problem 3. A $1,000 20-year 8% bond with semi-annual coupons is purchased for $1,025. The redemption value is $1,000. The coupons are reinvested at a

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Problem 3. A $1,000 20-year 8% bond with semi-annual coupons is purchased for $1,025. The redemption value is $1,000. The coupons are reinvested at a nominal annual rate of 6%, compounded semi-annually. Determine the purchaser's annual effective yield rate over the 20-year period

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