Question
Castor owns one bond A and one bond B.The total value of these two bonds is 2,700.37 dollars.Bond A pays semi-annual coupons, matures in 14
Castor owns one bond A and one bond B.The total value of these two bonds is 2,700.37 dollars.Bond A pays semi-annual coupons, matures in 14 years, has a face value of 1,000 dollars, and pays its next coupon in 6 months.Bond B pays annual coupons, matures in 18 years, has a face value of 1,000 dollars, has a yield-to-maturity of 5.78 percent, and pays its next coupon in one year.Both bonds have a coupon rate of 11.72 percent.What is the yield-to-maturity for bond A?Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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