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Problem 14-9 Consider an 6.0% coupon bond selling for $964.80 with three years until maturity making annual coupon payments. The interest rates in the next
Problem 14-9 Consider an 6.0% coupon bond selling for $964.80 with three years until maturity making annual coupon payments. The interest rates in the next three years will be, with certainty, r1 = 6%, r2 = 8%, and r3 = 9%. Calculate the bond's (a) yield to maturity and (b) realized compound yield. (Round your answers to 2 decimal places.) % Yield to maturity Realized compound yield %
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