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12. You are considering the purchase of a bond with a 5% coupon rate. Interest is payable semiannually. The bond will mature in fifteen years

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12. You are considering the purchase of a bond with a 5% coupon rate. Interest is payable semiannually. The bond will mature in fifteen years at its' par or face value of $1000. The bond currently sells for $1250. Find the approximate ANNUAL yield to maturity for the bond using the formula for the approximate yield to maturity shown below. ( 4 points)

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