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Werewolfdad t1_iujdwd8 wrote

> Does the interest rate mean a total annual return of 4.375% will apply both years? If so, is this 4.375% of $100 or $99.839071?

No, since the bond sold at a discount the yield to maturity will be slightly higher than the coupon

> Say $10,000 was purchased. This would cost $9,983.39. Excluding the semi-annual payment, at maturity would one receive $10,000 or just the principal ($,9,983.39)

You are paid face value

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Educational_Sir3783 OP t1_iuje8fr wrote

Thank you for your reply. I can work on doing some math but essentially this means the return would be higher than 4.375% annually, correct?

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