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You can buy a zero coupon bond that will pay 1000 at the end of 12 years and is currently selling for 624.60. Instead you
You can buy a zero coupon bond that will pay 1000 at the end of 12 years and is currently selling for 624.60. Instead you purchase a 6% bond with coupons paying semi-annually that will pay 1000 at the end of 10 years. If you pay X for the latter bond, you will earn the same annual effective rate as the zero- coupon bond. Calculate X.
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