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A 7-year bond with a face value of $1000 was issued on 1 July 2018. The bond pays annual coupons at 7% p.a. Daisy purchased
A 7-year bond with a face value of $1000 was issued on 1 July 2018. The bond pays annual coupons at 7% p.a. Daisy purchased the bond on 1 July 2020 immediately after the coupon payment at a price of $960. Which of the following equation can be used to find the yield to maturity X for Daisy? Select one or more: 70 1000 O a. 960 F (1 (1 + X)-5) + (1 + x)5 1000 1000 O b. 1000 (1 - (1 + X)-7)+ X (1 + x)? 70 1000 OC. 960 (1 - (1 - (1 + X)->) + (1 + x)? O d. None of the equations can be used to find X. 70 1000 e. X= (1 - (1.07)-7) + 0.07 (1.07) 1000 O f. 1000 -(1- - (1 + X)-5)+ X (1 + X)5 70
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