Determine investment opportunity


A 20 year bond with face value of $5,000 offered for sale at $3,800.The nominal rate of interest on the bond is 7%, paid semi-annually. This bond is now 8 years old (the owner has received 16 semiannual interest payment). If bond is purchased for $3,800, what is the effective annual interest rate would be realized on this investment opportunity?

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Microeconomics: Determine investment opportunity
Reference No:- TGS063696

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