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Homer Simpson bought a bond with 20 years to maturity from Doh! a year ago for $1100. This bond has a $1000 par value with
Homer Simpson bought a bond with 20 years to maturity from Doh! a year ago for $1100. This bond has a $1000 par value with a 7.5% coupon rate and makes annual coupon payments. Today, Homer needs money to buy pork rinds and wants to sell the bond, and teh bond's yield to maturity is 6%. What return would Homer earn from sellling the bond today? Solve with using terms in TVM solver (N, I, PV, PMT, FV)
a) 6.1%
b)12.9%
c) 6%
I know the answer is 12.9 but I don't know how to get there, please exaplin using the TVM values.
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