Show your workings clearly and explain your logic. You must provide one manual calculation of IRR to demonstrate that you understand the process.

A debenture with a face value of $100 is selling for $97.60. The coupon is 10% pa paid quarterly. What is the annual effective yield if the debenture has one and a half years to maturity (provide your answer as a percentage and accuracy to two decimal places)? Show your workings clearly and explain your logic. You must provide one manual calculation of IRR to demonstrate that you understand the process.

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