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Consider a three-year bond with face value F-1000, a coupon rate c=8%, and coupon payments paid quarterly. If the bond is currently traded at a
Consider a three-year bond with face value F-1000, a coupon rate c=8%, and coupon payments paid quarterly. If the bond is currently traded at a discount price B. - 880, what is the yield to maturity if you bought it today and you are planning to hold it till maturity? (keep your answer to four decimal places; that is, write 2.34% as 0.0234) Hint use the approximation method here. Select one O a. YTM=15.87% Ob YTM=19,45% OcYTM=16,47% Od. YTM=13.38% PAGE NEXT PAGE SSESSMENT: CHAPTER 5 (INDIVIDUAL, 0%) Jump to... LECTURE 6: PARTS 1 - 2 NEED TECHNICAL HELP? e here to search QUICK LINKS PO
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