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Q30 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! Suppose you're evaluating a bond with an 8% coupon rate, and it pays coupons annually.
Q30 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!!
Suppose you're evaluating a bond with an 8% coupon rate, and it pays coupons annually. The bond is currently trading at 96% of par value. If you were trying to find the yield to maturity by doing trial and error, which of the following interest rates would be the best initial guess? A. 8% B. 4% C. 96% D. 7% E. 9% F. All of these are equally good guesses to begin trial and errorStep by Step Solution
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