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A bond with annual interest payments based on a coupon rate of 13.45% and which matures in 8 years is trading for a price of

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A bond with annual interest payments based on a coupon rate of 13.45% and which matures in 8 years is trading for a price of $1,056.25. Kerry is thinking about buying some of these bonds with a yield to maturity requirement of 12.50%. The par value for the bond is $1,000. Would this bond's current market price make the bond attractive to Kerry? What is the Yield To Maturity ("YTM") for these bonds at the $1,056.25 price? o No, because the bond's price is higher than Kerry's estimate of value: 12.31% Yes, because the bond's price is lower than Kerry's estimate of value: 138500% Yes, because the bond's price is higher than Kerry's estimate of value: 12.3409% No, because the bond's price is higher than Kerry's estimate of value: 12.76% No, because the band's price is lower than Kerry's estimate of value: 10.8477%

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