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Luther, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and
Luther, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $872.92, what is the yield to maturity that an investor who buys them today can expect to earn?
1) Yield to maturity (%)
2) Effective annual yield (%)
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