What is your effective annual return if coupons are


a) What is the yield to maturity on a 15-year maturity, 9% coupon bond currently priced at 108.65 percent of par? (coupons are semi-annual)

b) What is your effective annual return if coupons are reinvested at an annual rate of 5%? (Hint: you will need to determine your FV in 15 years)

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Financial Management: What is your effective annual return if coupons are
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