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A South African company has a bond outstanding that sells for 88 percent of its R100,000 par value. The bond has a coupon rate of

A South African company has a bond outstanding that sells for 88 percent of its R100,000 par value. The bond has a coupon rate of 6 percent paid annually and matures in 20 years. What is the yield to maturity of this bond? (5) (Note: Formulae not required but all workings must be shown)

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