Question: A $1,000 par value bond has a current price of $800 and a maturity value of $1,000 and matures in 5 years. If interest is

A $1,000 bond has a current price of $800 and a value of $1,000 and matures in 5 years. If interest is paid semiannually and the bond is priced to yield 8%, what is the bond’s annual rate?

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