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Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.50% APR. The bonds pay semi-annual coupons, have a face value
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.50% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,127.00.
What is the 6-month return for holding the bonds until maturity? Given your answer to the 6-month return, what is the yield to maturity (as an APR AND as an EAR) for holding the bond? Please indicate the calculations for these.
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