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2b. b. You are looking at a bond that has 30 years to maturity. The coupon rate is 8% and coupons are paid semiannually.

2b. b. You are looking at a bond that has 30 years to maturity. The coupon rate is 8% and coupons are paid semiannually. The current price is $950. What is the yield to maturity? Is it a premium bond or a discount bond? Settlement Date: 01/01/00 Maturity Date: 01/01/30 Coupon Rate: Bond Price (% of par): Face Value (% of par): Coupons per year: Yield to maturity: Formula: =YIELD(B3, B4, B5, B6, B7, B8) Premium or Discount Bond?

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