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Q7) The coupon rate of Company XYZ Bond is 10% per annum, face value Value) is $1,000. Interest is paid semi-annually, with a maturity of

Q7) The coupon rate of Company XYZ Bond is 10% per annum, face value Value) is $1,000. Interest is paid semi-annually, with a maturity of 20 years. If an investor wants a 12% yield, what is the value of this bond? What is the effective annual rate of return (Effective Annual Rate) of this bond? [5 points]

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