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Astro in vestments bank has the following bond deals under way: Bond yield 8.0%; Commission 2% of sale price; Coupon Rate 8.0% Maturity 10 year.

Astro in vestments bank has the following bond deals under way: Bond yield 8.0%; Commission 2% of sale price; Coupon Rate 8.0% Maturity 10 year. The bond yield in the table is the market yield before the commission is charged. Assume that all bonds are semiannual and issued at a par value of $1000 Determine the net proceeds of the bond and the cost of the bond for the company in terms of yield.

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