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Solve: A bond that makes semi-annual payments has a coupon rate of 8% and a face value of $1,000. The bond has four years to
Solve: A bond that makes semi-annual payments has a coupon rate of 8% and a face value of $1,000. The bond has four years to maturity and is selling for a price of $1,043.80. What is the yield to maturity on this bond?
7. A bond that makes semi-annual payments has a coupon rate of 8% and a face value of $1,000. The bond has four years to maturity and is selling for a price of $1,043.80. What is the yield to maturity on this bond? A. 4.44% B. 2.83% C. 3.37% D. 6.48% E. 6.73% Answer: E. 6.733% (round to 6.73% )Step by Step Solution
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