Find the effective annual yield

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Problem 1: 5 year $1500 bond with a 10% annual coupon is redeemable at par. Tim buys the bond at a price which yields 8% per year. He is able to reinvest each coupon at 12% per year. Use the accumulated value at the end of 5 years to find the effective annual yield.

Reference no: EM132856840

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