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(Related to Checkpoint 9.2) (Yield to maturity) The market price is $775 for a 15-year bond ($1.000 par value) that pays 9 percent annual interest,
(Related to Checkpoint 9.2) (Yield to maturity) The market price is $775 for a 15-year bond ($1.000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity? The bond's yield to maturity is % (Round to two decimal places)
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
