Calculate the yield rate

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Problem - Sue just purchased a 2-year Treasury bond with a coupon rate j2 =3.92% pa. and a face value of $100 that matures at par. The purchase price was $98.80. Use linear interpolation to calculate the yield rate. Give your answer in j2 form, expressed as a percentage and rounded to 3 decimal places.

Reference no: EM133048340

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