What is effective interest rate of semiannual pay bond

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1. How can a business owner plan asset acquisitions to fully utilize the Section 179 deduction?

2. What is the effective interest rate of a semiannual pay bond with a YTM or nominal yield of 8%? As the number of compounding periods increases, what effect does it have on the effective interest rate?

3. A 20-year bond with an 8% coupon pays a semi-annual coupon payment of $40 every 6 months. What is the price of the bond? The yield to maturity is 5%.

Reference no: EM131943138

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