Question: Vernon purchases a 1 9 - year, zero - coupon bond that matures for 1 6 5 0 . The bond is priced to yield

Vernon purchases a 19-year, zero-coupon bond that matures for 1650. The bond is priced to yield 5% annual effective. Vernon sells the bond to Wendy N years after she purchased it. The price paid by Wendy results in an annual effective yield of 5.8% for Vernon and an annual effective yield of 4.2% for Wendy. Find N.

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