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(1 point) Determine the yield rate y2 for the following bond using the method of averages. State the result as a percent to 4 decimal places Face ValueRedeemable at: Bond Interest Years to Redemption Purchase Price 10000 101 4 9950 Answer: y2425/133

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Solution: Yield Rate formula= Interest + (FV-PP)/No of Years whole divided by FV+PP/2 this will give yield rate or yield to maturity as= 6.1404%

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