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Problem Walk-Through Problem 4-2 Yield to Maturity for Annual Payments Wilson Wonders' bonds have 10 years remaining to maturity. Interest is paid annually, the bonds

Problem Walk-Through
Problem 4-2 Yield to Maturity for Annual Payments

Wilson Wonders' bonds have 10 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 7%. The bonds sell at a price of $985. What is their yield to maturity? Round your answer to two decimal places.

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