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Business, 06.04.2021 03:40 jadens25

Bond A and Bond B are both annual coupon, five-year, 10,000 par value bonds bought to yield an annual effective rate of 4%. Bond A has an annual coupon rate of r%r%, a redemption value that is 10% below par, and a price of P. Bond B has an annual coupon rate of (r 1)%(r 1)%, a redemption value that is 10% above par, and a price of 1.2P. Calculate r%r%.

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