Multiple Choice
A $1200 bond with semi-annual coupons at j2 = 6% is bought on February 2,2006 (first coupon due on August 2,2006) for $1104 and it is sold on August 2,2010 for $1164.Using the method of averages,what is the yield rate,j2?
A) 5.03%
B) 5.17%
C) 7.52%
D) 7.67%
Correct Answer:
Verified
Correct Answer:
Verified
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