Question Ana buys an 11-year $100 bond with 7% semiannual coupons, redeemable at par, and...
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Question Ana buys an 11-year $100 bond with 7% semiannual coupons, redeemable at par, and selling for $121.50. Ana reinvests the coupons at a nominal annual rate of 8%, compounded semiannually. Determine Ana's annual effective yield rate over the 11-year period. Possible Answers A 4.50 B 4.55
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