Annual effective yield for the ten year

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Reference no: EM132009678

Christie DeLeon purchased a ten-year $1000 bond with semiannual coupons for $982. The bond has a $1100 redemption payment at maturity, a nominal coupon rate of 7% for the first five years and a nominal coupon rate of q% for the final five years. Christie calculated that her annual effective yield for the ten year period was 8.57%. Find q. Round your answer to 3 decimal places

Reference no: EM132009678

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