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Consider a bond with only 3 cash flows: Price: 1 0 3 8 Coupon ( semiannual payment ) : 6 0 Maturity: 1 0 6
Consider a bond with only cash flows:
Price:
Coupon semiannual payment:
Maturity:
Set up the discounting equation and use trial and error to calculate the annualized yieldtomaturity.
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