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An analyst finds that the semiannual interest rate that equates the present value of the bond's cash flow to its current market price is 3.85%
An analyst finds that the semiannual interest rate that equates the present value of the bond's cash flow to its current market price is 3.85% Consider the following possible alternatives: The bond equivalent yield on this security is 77% I The effective annual yold on the bond is 785%; . The bonds yield-to- maturity is 7.7%. IV. The band's horizon retum is 8 25%. Which of these alternatives are true? Select one: . a Ill only .b. 1. II, and Ill only . c. IV only dl and ll only
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