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Homework 4D Question 2: Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The

Homework 4D Question 2:

Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 15-year to maturity, carry a 12.11 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that these bonds would sell for $1,185 each. What is the yield to maturity for these bonds?

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