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Suppose Ireton Insurance company has an investment horizon of four years and purchases corporate bonds in the secondary market with six years remaining to maturity

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Suppose Ireton Insurance company has an investment horizon of four years and purchases corporate bonds in the secondary market with six years remaining to maturity for $577 million. Total par value is $550 million. The coupon rate is 8 percent, with annual interest payments. If the expected required rate of return in 4 years is 7 percent, what will be Ireton's yield if it sells the bonds at the end of their investment horizon? A. 6.971% B. 8.399% C. 6.959%

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