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BCC issued 8 % bonds a few years ago, and it has 20 years remaining to maturity. Assume annual coupon payments and a par value

BCC issued 8 % bonds a few years ago, and it has 20 years remaining to maturity. Assume annual coupon payments and a par value of $1,000. If an investor pays $1,025 for the bond, what is its YTM? Why would the investor pay more than par value?

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