A $7000, 6.11% bond with semi-annual coupons redeemable at par was purchased 5 years before maturity, at 97.5. What was the approximate yield rate? State only your final answer to four decimal places.
A $7000, 6.11% bond with semi-annual coupons redeemable at par was purchased 5 years before maturity, at 97.5. What was the approximate yield rate? State only your final answer to four decimal places.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 3P: Current Yield for Annual Payments Heath Food Corporations bonds have 7 years remaining to maturity....
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A $7000, 6.11% bond with semi-annual coupons redeemable at par was purchased 5 years before maturity, at 97.5. What was the approximate yield rate? State only your final answer to four decimal places.
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