Eagle Industries' bonds have a 10-year maturity and a 8.00 % coupon paid semiannually. They sell...

 

 

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Eagle Industries' bonds have a 10-year maturity and a 8.00 % coupon paid semiannually. They sell at their $1,000 par value, and are not callable. What is the effective annual rate (EFF %) for these bonds? Recall that EFF % = [1 + (Nominal Rate/n)]" - 1 Your answer should be between 7.20 and 9.12, rounded to 2 decimal places, with no special characters. Eagle Industries' bonds have a 10-year maturity and a 8.00 % coupon paid semiannually. They sell at their $1,000 par value, and are not callable. What is the effective annual rate (EFF %) for these bonds? Recall that EFF % = [1 + (Nominal Rate/n)]" - 1 Your answer should be between 7.20 and 9.12, rounded to 2 decimal places, with no special characters.

Answer rating: 100% (QA)

To calculate the effective annual rate EFF for the bonds we can use the formula EFF 1 No... View the full answer