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You are given the following information with respect to a bond: par amount: 500 term to maturity 3 years, and annual coupon rate 9.5%
You are given the following information with respect to a bond: par amount: 500 term to maturity 3 years, and annual coupon rate 9.5% payable annually. Annual Spot Term Interest Rates 1 10.7% 2 3 12.1% 13.3% Calculate the annual effective yield rate for the bond if the bond is sold at a price equal to its value based on spot rates.
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