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3. A firm issues 8-year bonds with a 5% coupon rate, paid semiannually, and a face value of $1,000. The price of the bonds is

3. A firm issues 8-year bonds with a 5% coupon rate, paid semiannually, and a face value of $1,000. The price of the bonds is $1,125. What is the yield to maturity? (4 points)

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