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Problem 6 - 5 Bond Yields ( LO 1 , 2 ) A bond with a face value of $ 1 , 0 0 0
Problem Bond Yields LO
A bond with a face value of $ has years until maturity, has a coupon
rate of and sells for $
a What is the yield to maturity if interest is paid once a year?
Note: Do not round intermediate calculations. Enter your answer as
a percent rounded to decimal places.
Yield to maturity
b What is the yield to maturity if interest is paid semiannually?
Note: Do not round intermediate calculations. Enter your answer as
a percent rounded to decimal places.
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