Find the yield to maturity on bond

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Reference no: EM133070240

Suppose that you want to buy a 2-year 5% coupon bond, which pays semi-annual coupons and costs $997. 

  1. Find the yield to maturity on this bond (YTM)
  2. Find the effective annual rate of return that you earn on this bond (EAR).

Reference no: EM133070240

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