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A 6% bond with semiannual coupons is redeemable at par in k years. It is...

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Finance

A 6% bond with semiannual coupons is redeemable at par in k years. It is purchased at a premium of $350. A 4% bond with semiannual coupon payments and with the same par value is also redeemable at par in k years. It is purchased at a premium of $100. The nominal annual yield rate compounded semiannually is the same for these two bonds. Calculate the yield rate.

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