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Effective annual yield on investment

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Reference no: EM131058064

Suppose an investor earned a semiannual yield of 6.4 percent (i.e. 6.4% per half year)on a bond paying coupons twice a year. What is the effective annual yield (EAY) on this investment?

Select one:

A. 12.80%

B. 6.40%

C. 13.21%

D. None of the above

Reference no: EM131058064

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