Find the effective annual yield rate

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Reference no: EM13917684

You purchase a 20-year 10% annual coupon bond with a face value of 1000, and a yield rate of 9%. It is a callable corporate bod, with a call price of 1025. It can be called after five years post issuing. After the 8th coupon payment, the issuing corporation redeems the bond. Find the effective annual yield rate on the 8 year investment.

Reference no: EM13917684

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