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3. Assume the following information for a given corporate step-up bond Par $1000 Maturity 12 years Current price $1,122.50 Assigned interest rates: Years 1-8: 4.80%

3. Assume the following information for a given corporate step-up bond Par $1000 Maturity 12 years Current price $1,122.50 Assigned interest rates: Years 1-8: 4.80% Years 9-12: 5.30% If this bond pays semi-annual coupon payments, what is the current YTM (Yield- to-Maturity or Intemal Rate of Return) for this bond

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