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| rev | Admin | (Created page with "'''Solution: C''' The semiannual yield rate is <math display = "block"> 1.1^{1/2}-1 = 0.0488. </math> Assuming the bond is called for 2900 after four years, the purchase price is <math display = "block"> 150a_{\overline{8}|0.0488}+2900(1.0488)^{-8}=150(6.4947)+1980.87=2955.08 </math> With a call after the first coupon, the equation to solve for the semi-annual yield rate (j) and then the annual effective rate (i) is <math display = "block"> \begin{array}{l}{{295...") | Nov 19'23 at 18:54 | +593 |