Two bonds are available on the market as follows:
Bond 1: Face value $750, y years to ma...
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Mathematics, 09.04.2020 02:59 impura12713
Two bonds are available on the market as follows:
Bond 1: Face value $750, y years to maturity at a (simple) interest rate of 5%.
Bond 2: Face value $500, 3 years to maturity at a (simple) interest rate of r.
Given that the total return of Bond 1 is $1,000 calculate y.
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