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Suppose Acme Corporation has issued a bond with the following specifications: The bond has a face value ( par value ) of $ 1 ,
Suppose Acme Corporation has issued a bond with the following specifications:
The bond has a face value par value of $
There are years remaining until the bond matures.
The bond features an annual coupon rate of
Currently, the bond is being traded at a price of $
Your task is to calculate the bond's Yield to Maturity YTM which represents the internal rate of return IRR for an investor if the bond is held until it matures, considering its current market price, the annual coupon payments, and the redemption of its face value at maturity. The YTM is an essential metric for comparing the annual return between different bonds. Please submit the value as a percentage with two decimal places.
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