What yield is being offered by the financial instrument


Problem 1: Suppose an investor is considering the purchase of a financial instrument that promises to deliver the following semiannual cash flows: four payments of $40 every six months for two years and $1,000 delivered four semiannual periods from now. Suppose the price of this financial instrument is $982.0624. What yield is being offered by this financial instrument?

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Financial Accounting: What yield is being offered by the financial instrument
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