Business
Business, 16.02.2022 14:00, rileyallen4186pd5tgy

Jeff has 8,000 and would like to purchase a 10,000 bond. In doing so, Jeff takes out a 10 year loan of 2,000 from a bank and will make interest-only payments at the end of each month at a nominal rate of 8.0% convertible monthly. He immediately pays 10,000 for a 10-year bond with a par value of 10,000 and 9.0% coupons paid monthly. Required:
Calculate the annual effective yield rate that Jeff will realize on his 8,000 over the 10-year period.

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Jeff has 8,000 and would like to purchase a 10,000 bond. In doing so, Jeff takes out a 10 year loan...

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