A ($1000) bond has a coupon rate of 8% and will repay its nominal value when it

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A $$1000$ bond has a coupon rate of 8% and will repay its nominal value when it matures in four years’ time.

The bond will be purchased today for $$900$ ex interest and held until maturity.

Calculate, to the nearest 0.01% the yield to maturity for the bond based on today’s purchase price.

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Management And Cost Accounting

ISBN: 9788131525470

8th Edition

Authors: Colin Drury

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Question Posted: May 06, 2024 03:00 AM

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A ($1000) bond has a coupon rate of 8% and will repay its nominal value when it

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Management And Cost Accounting

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