A $1200 bond with semi-annual coupons at j₂ = 6% is bought on February 2,2006 (first coupon due on August 2,2006)for $1104 and it is sold on August 2,2010 for $1164.Using the method of averages,what is the yield rate,j₂?

Question

Quizplus · Accepted Answer

The Answer of A $1200 bond with semi-annual coupons at j₂ = 6% is bought on February 2,2006 (first coupon due on August 2,2006)for $1104 and it is sold on August 2,2010 for $1164.Using the method of averages,what is the yield rate,j₂?

A $1200 Bond with Semi-Annual Coupons at J2 = 6

A $1200 Bond with Semi-Annual Coupons at J₂ = 6