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What is the effective annual yield

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What is the effective annual yield of a $1000 par value bond that pays semi-annual coupons, has an annual coupon rate of 8% with a current trading price of $975 and a time to maturity of 9 years? What will happen to the value of the bond if the nominal YTM falls by 50 basis point? Will it trade at a discount par or premium? Round to the nearest percent. (Hint: 100 Basis point = 1%)

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Reference no: EM132953053

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