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Company Z's bonds make an annual coupon interest payment of 7.45% every year. The bonds have a par value of $1,000, a current price of

Company Z's bonds make an annual coupon interest payment of 7.45% every year. The bonds have a par value of $1,000, a current price of $965, and mature in 12 years. What is the yield to maturity on these bonds?

a.

6.83%

b.

7.91%

c.

7.25%

d.

5.71%

e.

8.33%

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