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Suppose your friend is debating purchasing a bond that has a $1,000 par value, 14 years to maturity, and an 8% annual coupon. Your friend
Suppose your friend is debating purchasing a bond that has a $1,000 par value, 14 years to maturity, and an 8% annual coupon. Your friend would like to determine the yield to maturity if the bond sells for a price of $821. What is the yield to maturity for this bond? 8.89%9.41%10.5%11.64% Assume the yield to maturity remains constant over the next four years. What will the price of the bond be four years from now? $764.12$823.59$849.85$1,080
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