Question: Use the method of averages to find the approximate yield rate for each of the six bonds shown in the table below. All are redeemed

Use the method of averages to find the approximate yield rate for each of the six bonds shown in the table below. All are redeemed at par.

Face Value $10 000 5 000 25 000 1000 50 000 20 000 Bond Rate Payable Semi-annually 6% 10.5 7.5 8.5 Time Before Maturity 15 years years 10 years 8 years 5 years, 4 months 9 years, 8 months Market Quotation 2. 3. 4. 5. 6. 101.375 94.75 97.125 101 98.875 109.25

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1 Quoted price initial book value 10 00000101375 10 13750 Principal 10 00000 Average book value 12 10 13750 10 00000 10 06875 The semiannual interest ... View full answer

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