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Consider the following coupon bond issued by XYZ.inc Term: 1 year Payment: 25 Face Value: 500 Currently the prevailing risk free rate is 0.03 and

Consider the following coupon bond issued by XYZ.inc Term: 1 year Payment: 25 Face Value: 500 Currently the prevailing risk free rate is 0.03 and the market places a risk premium on XYZ.inc bonds of 0.04 Compute the Yield to Maturity of this bond. Record your unitless answer as a decimal to two decimal places Answer: (0.07)

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