Question: Suppose Bob has an n-year bond with a face value of 100, 6% annual coupons, selling for 120. Suppose John also has an n-year bond

Suppose Bob has an n-year bond with a face value of 100, 6% annual coupons, selling for 120. Suppose John also has an n-year bond with a face value of 100, 3% annual coupons, selling for 85. Bob's and John's bonds share a yield rate j; find j.

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