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Assume a $1,000 face value bond with 20 years left until maturity. If the coupon rate is 10%, paid semi-annually, and the current yield is
Assume a $1,000 face value bond with 20 years left until maturity. If the coupon rate is 10%, paid semi-annually, and the current yield is 8.85%, what should be the yield to maturity on this bond?
Please use financial calculator and explain why each value is calculated that way. Thank you very much!
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