Determine the effective rate of return-corporate bond

Determine the effective rate of return-corporate bond

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Reference no: EM13691085

Vic Zaloom bought a corporate bond from IBEM Corporation for $100,000. The face value of the bond is $100,000 and will mature in twenty years. A $2,500 dividend is expected to be paid every quarter. If Vic plans to keep the bond until maturity, determine the effective rate of return he is getting on this investment.

Reference no: EM13691085

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