Vic Zaloom bought a corporate bond from IBEM Corporation for $100,000. The face value of the bond is $100,000 and will mature in twenty years. A $2,500 dividend is expected to be paid every quarter. If Vic plans to keep the bond until maturity, determine the effective rate of return he is getting on this investment. A. 10.38% B. 10.00% C. 12% D. 9.15%

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A: YTM is the Yield the bond gives its  bond holder  provided he hold the bond till Maturity In the…

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A: Please find the answers to the above questions below:

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A:

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A: Computation:

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