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Consider two 30-year bonds with the same purchase price. Each has an annual coupon rate of 5% paid semiannually and a par value of

Consider two 30-year bonds with the same purchase price. Each has an annual coupon rate of 5% paid semiannually and a par value of 1000. The first bond has an annual nominal yield rate of 5% compounded semiannually, and a redemption value of 1200. The second bond has an annual nominal yield rate of j compounded semiannually, and a redemption value of 800. Calculatej.

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