Shannon purchases a bond for $1,142.38. The bond matures in 3 years, and she will redeem it

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Shannon purchases a bond for $1,142.38. The bond matures in 3 years, and she will redeem it at its face value of $1,200. Interest premiums are paid annually. If Shannon will earn a yield of 13%/year compounded yearly, what is the bond interest rate?

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Posted Date: Mar 01, 2024 07:04 AM

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Shannon purchases a bond for $1,142.38. The bond matures in 3 years, and she will redeem it

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Introduction to Corporate Finance What Companies Do

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