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A one- year zero- coupon bond has an annual yield of 6.25%. A two- year zero- coupon bond has an annual yield of 7.00%. A
A one- year zero- coupon bond has an annual yield of 6.25%. A two- year zero- coupon bond has an annual yield of 7.00%. A three- year zero- coupon has an annual yield of 7.50%. A three- year 12% annual coupon has a face value of $1,000. Find the yield to maturity on this three- year 12% annual coupon bond.
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