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A corporate bond has 1 6 years left to maturity. It offers a coupon rate of 7 % per year ( paid semiannually ) on

A corporate bond has

16

years left to maturity. It offers a coupon rate of

7 %

per year

(

paid semiannually

)

on a $

1000

par value. If it is selling in the market for $

980,

what is its yield to maturity? Solve using calculator or by hand please.

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