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A $ 1 , 0 0 0 par value bond with a 8 . 5 0 % coupon rate ( semiannual interest ) matures in

1, 000

par value bond with a

8.50 %

coupon rate

(

semiannual interest

)

matures in

8

years and currently sells for $

977.36 .

What is the

bond's yield to maturity and bond equivalent

yield?

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