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An Investor Purchased a $60,000 Bond with Coupons Payable at J2

Question 71

Multiple Choice

An investor purchased a $60,000 bond with coupons payable at j2 = 6% on March 1,2010 (first coupon was due on September 1,2010) for $55,200.He then sold this bond $58,200 on March 1,2015.Using the method of averages,what is the investor's yield rate,j2?


A) 5.34%
B) 7.52%
C) 7.41%
D) 7.67%

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