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If a bond, with a nominal value (N) of 100 and a coupon of 2.5% can be bought at a market price (P) of 97.50,

If a bond, with a nominal value (N) of 100 and a coupon of 2.5% can be bought at a market price (P) of 97.50, what is the yield on the bond (expressed as a percentage to 2 decimal places)? (Ignore any gain or loss when the bond is redeemed or resold.)

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