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Suppose you have developed a bond portfolio using the bonds listed below (per $100 par value) reported. All the bonds make semi-annual coupon payments. Bond
Suppose you have developed a bond portfolio using the bonds listed below (per $100 par value) reported. All the bonds make semi-annual coupon payments.
Bond | Coupon Rate (%) | # of years | Price |
A | 8 | 2 | 70 |
B | 6 | 2 | 105 |
C | 10 | 4 | 99 |
What is the yield to maturity of the above bond portfolio based on the cash flow yield?
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