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Consider the following information on a non-callable bond: Annual coupon payments (C)= $120, Face value of bond (F) = $1000, Maturity date = 14 years,

Consider the following information on a non-callable bond:

Annual coupon payments (C)= $120, Face value of bond (F) = $1000, Maturity date = 14 years, Current price of bond (Pm) = $1200. The reinvestment rate for coupons for years 1-14 is 8%. What is the yield to maturity (YTM) of this bond?

9.376

8.795%

7.965%

8.255%

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