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An investor looks at today's yield to maturities in the Wall Street Journal for debt with 10 year maturities. He observes the following: Rating AAA
An investor looks at today's yield to maturities in the Wall Street Journal for debt with 10 year maturities. He observes the following: Rating AAA AAA YTM 4.43% 4.60% 4.75% 4.95% 5.15% Exxon Mobil (XON) has debt that is AAA rated. Suppose an investor wants to value Exxon bonds that will mature in 10-years. He sees one Exxon bond that pays a 7.00% annual coupon with a face value of $1,000. Bond prices are often quoted as a percentage of $100 face value increments. How would you quote your results from Part A? (express answer as a percentage, xx.xx%, of par) Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) Enter Answer Here
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