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A fixed-rate bond currently trades at 96% of par value and offers a coupon rate of 5% with coupon payments paid semiannually. The bonds yield
A fixed-rate bond currently trades at 96% of par value and offers a coupon rate of 5% with coupon payments paid semiannually.
The bonds yield to maturity is most likely to be:
| A | in the range between 2.60% and 5.21%. |
| B | in the range between 5.00% and 5.21%. |
| C | greater than 5.21%. |
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