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A bond with a coupon rate of 7.5% paid semi-annually, maturing in 5 years at a value of $1,000, and a current market price of

A bond with a coupon rate of 7.5% paid semi-annually, maturing in 5 years at a value of $1,000, and a current market price of $710, will have a yield to maturity of:

Multiple Choice

  • 16.2%.

  • 12.8%.

  • 7.5%.

  • 25.6%.

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