Question: A 5% bond with face amount 1000 is redeemable in k years and is purchased for 1300. A 4% bond with the same face amount

A 5% bond with face amount 1000 is redeemable in k years and is purchased for 1300. A 4% bond with the same face amount and the same redemption date as the first bond has a purchase price of 1100. The nominal annual yield rate is the same for both bonds. Find that rate.

Do NOT use EXCEL. Do NOT use a Financial Calculator.

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