Multiple Choice
A $1200 bond with semi-annual coupons at j2 = 6% is sold at q = 97 on August 2,2010.It is bought at q = 85 on February 2,2003,with the first coupon due August 2,2003.Using the method of averages,what is the yield rate,j2?
A) 8.35%
B) 8.48%
C) 9.67%
D) 9.80%
Correct Answer:
Verified
Correct Answer:
Verified
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