What is donald effective annual yield on the investment

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Problem 1: Donald purchased a 10 year maturity bond three years ago. The bonds pay annual coupons at a rate of 10% of the face value of $1,000. At the time when Donald purchased the bond, the yield to maturity was 8%. If Donald sells the bond after receiving the fifth coupon payment when the bond's yield to maturity had fallen to 6%, what is Donald's effective annual yield on the investment.

Reference no: EM132720286

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