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Some bonds are issued without coupons. They simply pay out their par value when they mature. (These types of bonds are called zeroes.) A zero
Some bonds are issued without coupons. They simply pay out their par value when they mature. (These types of bonds are called "zeroes.")
A zero is issued by a company, with 10 years to maturity. The par value of the bond is $1000. Investors purchase the bonds for $595 each. What is their yield if purchased at the time of issue? Answer in percentage with one decimal place and with the percent sign, for example, 9.1%
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