Given the following information; Face Value = $50,000 Bond Rate = 4% Coupons per year = 2 (Semi-annual) Years and Months left on bond = 6 Years and 4 Months Market Quotation = 98.778 1.) Find the Quoted Price. (3 decimals) 2.) Find the Average Book Value. (3 decimals) 3.) Find the value of the Coupon. (3 decimals) 4.) Find the number of coupons left on the bond. 5.) Find the Total Interest. (2 decimals) 6.) Find the Premium (or Discount) (3 decimals) If this is negative, include the negative sign in your answer. 7.) Find the Average Income per Coupon. (2 decimals) 8.) Calculate the Approximate value of i. (Correct to 4 decimals) %

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.