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Problem 4.12 A woman purchases a 10-year 1000 par value bond with 8% semi-annual coupons. The bond is priced to yield 7.5% converted semi-annually. The
Problem 4.12 A woman purchases a 10-year 1000 par value bond with 8% semi-annual coupons. The bond is priced to yield 7.5% converted semi-annually. The coupons are re-invested in a fund paying 7.0% nominal, converted semi-annually, what is her corresponding nominal annual rate of return (yield) on this investment, convertible semi-annually
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