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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
- 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.
- Calculate the Bonds yield to maturity
- 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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