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An Ultima Ratio Corp. bond carries a 1 2 percent coupon, paid semiannually. The face value is $ 1 , 0 0 0 , and

An Ultima Ratio Corp. bond carries a 12 percent coupon, paid semiannually. The face value is $1,000, and the bond matures in eight years. The bond currently sells for $1,250. What is its annual yield to maturity? (Hint: Annual YTMs on bonds are quoted as twice the effective six-month YTM.)

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