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Business, 26.08.2020 19:01 alanaruth3389

Claire purchases an eight-year callable bond with a 10% annual coupon rate payable semiannually. The bond has a face value of 3,000 and a redemption value of 2,800. The purchase price assumes the bond is called at the end of the fourth year for 2,900, and provides an annual effective yield of 10.0%. Immediately after the first coupon payment is received, the bond is called for 2,960. Claire’s annual effective yield rate is i. Calculate i.

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Claire purchases an eight-year callable bond with a 10% annual coupon rate payable semiannually. The...
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