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Allen Wrenchs Company has bonds outstanding bearing a coupon rate of 15%. The bonds pay coupons semiannually, have two years remaining to maturity, and are

  1. Allen Wrenchs Company has bonds outstanding bearing a coupon rate of 15%. The bonds pay coupons semiannually, have two years remaining to maturity, and are currently priced at $980 per bond. What is the yield to maturity on the bonds?
    1. 15.00%
    2. 15.99%
    3. 16.21%
    4. 16.25%
    5. 16.57%

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