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An investor will pay $2,318.63 for an n-year $2,000 par bond with a coupon rate of 10% compounded semiannually or he will pay $2,531.05 for an nyear $2,000 par bond with a coupon rate of 11% compounded
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An investor will pay $2,318.63 for an n-year $2,000 par bond with a coupon rate of 10% compounded semiannually or he will pay $2,531.05 for an nyear $2,000 par bond with a coupon rate of 11% compounded semiannually. Assuming that the investor gets the same yield on the two bonds, find this yield rate expressed as a nominal rate convertible two times per year. Also find n.

User Anderso
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Answer:

28 years

Step-by-step explanation:

check the pictures attached below for the explanation and i hope it helps. Thank you

An investor will pay $2,318.63 for an n-year $2,000 par bond with a coupon rate of-example-1
An investor will pay $2,318.63 for an n-year $2,000 par bond with a coupon rate of-example-2
User Pradeep Rajkumar
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