Find Effective Rate (APY)and Show Work: (Round to Nearest Hundredth)

question 58

Short Answer

Find effective rate (APY)and show work: (round to nearest hundredth)
$$\begin{array} { | l | l | l | l | } \hline \text { Principal } & \text { Rate } & \text { \#times Compounded per year } & \text { Effective Rate (APY) } \\\hline \$8,000 & 12 \% & \text { Semiannually } & ?\\\hline\end{array}$$

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Definitions:

Date of Issue

The date on which a financial instrument, such as a bond or stock, is made available for sale or issued.

Redemption

The process of paying off or buying back securities or debts by the issuer before their maturity date, often at a predetermined price.

Carrying Value

The book value of an asset, reflecting its original cost minus any depreciation, amortization, or impairment charges.

Bonds Maturity

The date at which a bond's principal amount is due to be paid back to the bondholder, terminating the bond's existence.