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Problem 5: A new Corporate bond was initially sold by a stockholder to an investor for $950. The issuing corporation promised to pay the bondholder

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Problem 5: A new Corporate bond was initially sold by a stockholder to an investor for $950. The issuing corporation promised to pay the bondholder $40 interest every 6 months and $1,000 will be repaid at the end of 9 years. What is rate of return, nominal interest rate and effective interest rate

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