A 25-year bond making semi-annual coupon payments of $37.50 is currently trading at a price of $896.71.

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A 25-year bond making semi-annual coupon payments of $37.50 is currently trading at a price of $896.71. The face value of the bond is $1000. What is the EAR/EFF of this bond?

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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Posted Date: Apr 28, 2023 04:22 AM

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A 25-year bond making semi-annual coupon payments of $37.50 is currently trading at a price of $896.71.

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First we need to calculate the annual coupon payment Annual coupon paymen... View the full answer

Fundamentals of Investing

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