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Your client is considering the purchase of a bond that is currently selling for $1148.18. The...

Your client is considering the purchase of a bond that is currently selling for $1148.18. The client wants to know what annual rate of return can they expect to earn on the bond. The bond has 14 years to maturity, pays a coupon rate of 2.5% (payments made semi-annually), and a face value of $1000. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%)

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Answer #1

face value = 1000 Present Value = 1148.18 Time = 148 2 = 28 penods. Coupon = 2:57.X1000 = 12.50 Using financial calculator, f

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