Multiple Choice
Effective annual yield: Suppose an investor earned a semiannual yield of 6.4 percent on a bond paying coupons twice a year. What is the effective annual yield (EAY) on this investment?
A) 12.80%
B) 6.40%
C) 13.21%
D) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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