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2. (25%) A bond has a coupon rate of 10%, pays interest semiannually, sells for $1,100, and matures in 3 years. a) Calculate the approximate

2. (25%) A bond has a coupon rate of 10%, pays interest semiannually, sells for $1,100, and matures in 3 years.

a) Calculate the approximate YTM (yield to maturity). b) Calculate the YTM, using a financial calculator. c) What is the difference between the approximate YTM and the Real YTM in (b)?

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