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How do you get number 1? can someone please explain Contingent Corp has $15 million of debt outstanding. It has a coupon rate of 8%

How do you get number 1? can someone please explain

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Contingent Corp has $15 million of debt outstanding. It has a coupon rate of 8% and pays coupons twice a year. The debt matures in 10 years and is priced at 97% of par value. What is the YTM of the debt? 8.45% What is the effective annual return on the debt? r_D = 8.63%

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