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You buy a bond issued by terlingua oil & gas exploration co. The coupon rate is...

You buy a bond issued by terlingua oil & gas exploration co. The coupon rate is 9% and coupons are paid semi annually. Par of your bond is $10000. The bond matures in 10 years. Your price today on the bond is $9500. In six months, the ytm on the bond has risen 1%. You collect the coupon payment and sell the bond. What is your effective annual rate of return?

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jeff jeffy answered 1 year ago
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