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A two-year bond pays a coupon rate of 10 percent and has a face value of $1,000. (That is, the bond pays interest of $100
A two-year bond pays a coupon rate of 10 percent and has a face value of $1,000. (That is, the bond pays interest of $100 per year, plus its principal/face value of $1,000 in year 2.) If the bond sells for $960, what is its approximate yield to maturing? Hint: This requires a little trial-and-error calculations
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Auditing and Assurance Services
Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau
7th edition
978-1259573286, 1259573281, 978-1260152166
