Don purchases a 15 year, $2, 500 bond with semiannual coupons, and with a 5%...
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Accounting
Don purchases a 15 year, $2, 500 bond with semiannual coupons, and with a 5% coupon rate and a 7% yield rate. Immediately after receiving his coupons, he invests his coupons into an account earning a nominal semiannual interest rate of i (2). Find i (2) if Don earns an equivalent effective semiannual interest rate of 8% (i.e. his yield rate) on his whole investment after 15 years.
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