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Posted on May 11, 2024

Suppose you purchased a 3 0 0 0 par value, 5 year 1 0 % bond for 2 5 0 0 . Then you reinvest

Suppose you purchased a

3000

par value,

5

year

10 %

bond for

2500 .

Then you reinvest all coupon payments at a nominal rate of

6 %

convertible monthly. Calculate his effective annual yield rate over the

5 -

year period?

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