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Facebook, Inc. is issuing bonds with a face value of $800, a coupon rate of 4%, and 5 years remaining until maturity. Calculate the yield

Facebook, Inc. is issuing bonds with a face value of $800, a coupon rate of 4%, and 5 years remaining until maturity. Calculate the yield to maturity for these bonds, considering the current market price of $850. Explain how you arrived at your answer and interpret its implications for bond investors.

                 

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