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An investor buys a 3 0 - year bond with a $ 1 , 0 0 0 face value for $ 9 5 0 .

An investor buys a

30 -

year bond with a $

1, 000

face value for $

950 .

The bond

s coupon rate is

5

percent and interest payments are made semi

-

annually. Using the YTM

(

yield to maturity

)

approximation formula, what is the bond

s yield to maturity? Show your calculations.

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