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A German company has a bond outstanding that sells for 92 percent of its $100,000 par value. The bond has a coupon rate of 4%

A German company has a bond outstanding that sells for 92 percent of its $100,000 par value. The bond has a coupon rate of 4% paid quarterly and matures in 15 years. What is the yield to maturity of this bond?

i. Write down the discounted cash flow equation.

ii. Solve the equation to find the yield to maturity.

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