What is the rate of return on this investment per six months

Reference no: EM13182013

John Q is planning to buy a bond having a face value of $100,000 for $90,000. The bond is paying 8% per year payable semi-annually and is redeemable 6 years from now at its face value. What is the rate of return on this investment per six months and per year (nominal and effective)? (5 <= i* <= 6 % per six months)

Reference no: EM13182013

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