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Effective annual yield of a bond

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Reference no: EM131751174

1. What is the effective annual yield of a bond that promised an annual yield of 7.5% if this bond pays coupons twice a year?

2. What is the EAC of two projects: project A, which costs $230 and is expected to last two years, and project B, which costs $300 and is expected to last three years? The cost of capital is 12%.

Reference no: EM131751174

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