A bond has two years to mature. It makes a coupon payment of $100 after one year and both a coupon payment of $100 and a principal payment of $1,000 after two years. The bond is selling for $1,072.99. What is its effective yield? The bond's effective yield is percent. (Enter a numeric response rounded to two decimal places.)

A bond has two years to mature. It makes a coupon payment of $100 after one year and both a coupon payment of $100 and a principal payment of $1,000 after two years. The bond is selling for $1,072.99. What is its effective yield? The bond's effective yield is percent. (Enter a numeric response rounded to two decimal places.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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