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Q2-Considera$1,100-par-valuebondwiththefollowingcharacteristics: A current market price of $1,300, 7 years until maturity, A5 percentcoupon rate(with interest paid annually). Wewanttodeterminethediscountratethatsetsthepresentvalueofthebond'sexpectedfuture cash-flow stream equal to the bond's current

Q2-Considera$1,100-par-valuebondwiththefollowingcharacteristics: A current market price of $1,300,

7 years until maturity,

A5 percentcoupon rate(with interest paid annually).

Wewanttodeterminethediscountratethatsetsthepresentvalueofthebond'sexpectedfuture cash-flow stream equal to the bond's current market price (YTM)

CalculateYield toMaturity(YTM)

note: the answer should be solve like this example (Q13)

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