Sam buys a teo bond with a face value of 1000 for 900 what


Problem

Sam buys a TEO bond with a face value of $1,000 for $900. The bond matures in 10 years and pays a coupon interest rate of 6% every quarter. What is the annual effective interest rate of return if Sam holds the bond to maturity?

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Accounting Basics: Sam buys a teo bond with a face value of 1000 for 900 what
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