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Suppose that a bond expires in half a year and is redeemable at par with quarterly coupons paid at an annual rate of 5% compounded
Suppose that a bond expires in half a year and is redeemable at par with quarterly coupons paid at an annual rate of 5% compounded quarterly. If the face value of the bond is $100 and it was purchased for $97.78, find the periodic yield rate yy as a percent to 2 decimal places. [Hint: Treat each payment period as its own zero-coupon bond and make use of the quadratic formula.]
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