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You purchase a 30-year 8% annual coupon bond with a face value of 1000, at a yield rate of 9%. The bond is a callable corporate bond, with a call price of 1,050, and can be called by the issuing corporation after five years. Immediately after the 9th coupon payment, the issuing corporation redeems the bond. Determine the effective annual yield you achieved on this 9-year investment.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91591294

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