Assume an investor has just purchased a 5 year bond with a, Ask an Expert

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Assume an investor has just purchased a 5 year bond with a 2% coupon (paying 1% semi-annually); the purchase price was $950 (par value=$1000). If the investor holds this bond until maturity, what will their effective annual yield be? (Essentially an IRR problem.

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Financial Management, Finance

Category:- Financial Management
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