You just purchased a bond that matures in 12 years. The bond has a face value of

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You just purchased a bond that matures in 12 years. The bond has a face value of $1,000 and has an 6% annual coupon. The bond has a current yield of 6.4%. What is the bond's yield to maturity?

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Financial Management Theory And Practice

ISBN: 978-0176583057

3rd Canadian Edition

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

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