Question: A buys a 1 0 - year $ 1 0 0 0 par value 6 % bond with semianmual coupons. The price assumes a nominal

A buys a 10-year $1000 par value 6% bond with semianmual coupons. The price assumes a nominal yield of 6% compounded semiannually. As A receives each coupon payment, it is immediately put into an mocount earning interest at an monvel effeceive rate of i. At the ond of 10 years, immediately after receipt of the final coupon payrnent and the redemption value of the bond. A has earmed an annual effective yield of 7 on on the investrment in the bond. Calculate i.
A buys a 10-year $1000 par value 6% bond with semianmual

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