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1. What is the yield to maturity on a 10-year, 8% annual coupon, $1,000 par value bond that sells for $870.00? That sells for $1,100?

1. What is the yield to maturity on a 10-year, 8% annual coupon, $1,000 par value bond that sells for $870.00? That sells for $1,100? What does the fact that it sells at a discount or at a premium tell you about the relationship between rd and the coupon rate?

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