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Consider a 10-year $1000 bond that was issued 4-years ago. If the bond has an annual coupon rate of 6%, pays coupon semi-annually, and is

Consider a 10-year $1000 bond that was issued 4-years ago. If the bond has an annual coupon rate of 6%, pays coupon semi-annually, and is currently selling for $1,027.

Estimate if the yield to maturity is more likely to be 7.25%, 6.45% or 5.45%. Explain why.

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