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Fresh Fruit, Inc. has a $3,000 par value bond that is currently selling for $1,457. It has an annual coupon rate of 14.86 percent, paid
Fresh Fruit, Inc. has a $3,000 par value bond that is currently selling for $1,457. It has an annual coupon rate of 14.86 percent, paid semiannually, and has 22-years remaining until maturity. What would the annual yield to maturity be on the bond if you purchased the bond today and held it until maturity?
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To calculate the yield to maturity YTM of the bond we can use the formula P C1 fracrmnm F1 fracrmnm ...
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Fixed Income Analysis
Authors: Barbara S. Petitt
5th Edition
1119850541, 978-1119850540
