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Problem: 4-2 The Firm, Inc. has 8.6% coupon bonds on the market with eight years to maturity. The bonds make semiannual payments and currently sell

Problem: 4-2

The Firm, Inc. has 8.6% coupon bonds on the market with eight years to maturity. The bonds make semiannual payments and currently sell for 107.4 percent of par.

A] What is the current yield on the bonds?

B] What is the YTM?

C] What is the effective annual yield?

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