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A four-year bond has an 8 percent coupon rate, paid annually, and a face value of $1,000. If the current price of the bond is

A four-year bond has an 8 percent coupon rate, paid annually, and a face value of $1,000. If the current price of the bond is $1,000, calculate the yield to maturity of the bond.

a) 8 percent

b) 10 percent

c) 12 percent

d) 6 percent

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