1. An investment provides an annual return of 10% with a compounding frequency of 4 times per year. What is the effective annual rate of return for this investment?

2. A company has issued a bond with a face value of $1,000, a coupon rate of 8% paid semi-annually, and a maturity of 10 years. What is the bond's yield to maturity (YTM) if the current market price of the bond is $960?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The effective annual rate EAR of return ... View the full answer