Suppose an investor earned a yield of 12.4 percent p.a. on a bond paying coupons twice a year. What is the effective annual yield (EAY) on this investment?

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
ChapterP5: Part 5: Short-term Asset And Liability Management
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What is the effective annual yield on this investment on these financial accounting question?

Suppose an investor earned a yield of 12.4 percent p.a. on a
bond paying coupons twice a year. What is the effective annual
yield (EAY) on this investment?
Transcribed Image Text:Suppose an investor earned a yield of 12.4 percent p.a. on a bond paying coupons twice a year. What is the effective annual yield (EAY) on this investment?
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