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2 . What is the yield - to - maturity of a bond that sells for 9 3 ( ie 9 3 % of face

2 .

What is the yield

-

-

maturity of a bond that sells for

93 (

93 %

of face value

)

with

5

years to maturity and a coupon rate of

7 % ?

Assume annual interest payments and a face value of $

1, 000 .

Round answer to two decimals.

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