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One More Time Software has 9.8 percent coupon rate (APR) bonds on the market with 9 years to maturity. The bonds make semiannual payments and
One More Time Software has 9.8 percent coupon rate (APR) bonds on the market with 9 years to maturity. The bonds make semiannual payments and currently sell for 104.4 percent of par. Required:
(a) What is the current yield on the bonds?
(b) What is the YTM as an APR?
(c) What is the YTM as an effective annual rate (EAR)? Note: use the ICONV to convert an APR into an EAR.
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