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You purchased a Tk.1,000 bond paying 8 percent semiannual interests two years ago. The bond has a maturity of 6 years and it can be

You purchased a Tk.1,000 bond paying 8 percent semiannual interests two years ago. The bond has a maturity of 6 years and it can be sold today at Tk.980.

a. Use the interpolation technique to calculate the yield to maturity of the bond.

b. What is the annualised yield on the bond?

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