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A Good Firm is offering is offering bonds with a face value of $1000. The bonds mature in 10 years. The annual coupon rate is
A Good Firm is offering is offering bonds with a face value of $1000. The bonds mature in 10 years. The annual coupon rate is 12%, with payments made annually. Jocelyn just puchased a bond for $1,125.
1. Will the YTM of this bond be greater or less than the coupon rate?
2. What is the Yield to Maturity of this bond?
12%
13.54
Cannot Tell
9.97
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