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Question 3 BMX Investments Limiteds bond is currently selling at $1200. It has a coupon rate of 10% and a par value of $1000. It

Question 3

  1. BMX Investments Limiteds bond is currently selling at $1200. It has a coupon rate of 10% and a par value of $1000. It pays annual interest with 15 years to maturity.
  1. Calculate the Bonds yield to maturity
  2. Use the yield to maturity computed above and the coupon rate, along with the bonds current price and par value to explain the relationship and differences between them.

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