Effective annual rate of interest

by | Oct 5, 2021 | Homework Help

A savings account pays interest at a rate of 3%, quarterly compounded. What is the effective annual rate of interest (EAR)? A Microsoft bond has 12 years to maturity. Every six months, the bond makes a coupon payment of $21. The bond has a par value of $1000, a yield to maturity of 4.7 percent. What is the price of this bond?

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