What effective interest rate will mike get if he keeps bond

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Reference no: EM131309920

Mike buys a corporate bond with a face value of $1000 for $900. The bond matures in 10 years and pays a coupon interest rate of 6%. Interest is paid every quarter. (a) What effective interest rate will Mike get if he keeps the bond only for 5 years and sells it for $950? (You can compute "i" in excel but compute effective interest rate manually)

Reference no: EM131309920

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What effective interest rate will mike get if he keeps bond : Mike buys a corporate bond with a face value of $1000 for $900. The bond matures in 10 years and pays a coupon interest rate of 6%. Interest is paid every quarter. What effective interest rate will Mike get if he keeps the bond only for 5 years and s..

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