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TFC Inc. issues a bond with a face value of $50,000,000 with a coupon rate of 5.500% maturing in 12 years. The current yield rate

TFC Inc. issues a bond with a face value of $50,000,000 with a coupon rate of 5.500% maturing in 12 years. The current yield rate is r(2) = 7.500%. TFC will secure the bond by making monthly deposits of $263,211.64 into a sinking fund paying r% compounded semi-annually. What is r?

a.4.500%.

b.4.590%.

c.4.635%.

d.5.400%.

e.4.545%.

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