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TERS 4 & 5 (INDIVIDUAL, 4%) Consider a three-year bond with face value F=1000, a coupon rate c=8%, and coupon payments paid quarterly. If the

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TERS 4 & 5 (INDIVIDUAL, 4%) Consider a three-year bond with face value F=1000, a coupon rate c=8%, and coupon payments paid quarterly. If the bond is currently traded at a discount price Bo=780, what is the yield to maturity if you bought it today and you are planning to hold it till maturity? (keep your answer to four decimal places; that is, write 2.34% as 0.0234) Hinto use the approximation method here. of QL estion Select one O aYTM=19.45% b. YTM=16.47% Finis OCYTM=15.87% O d. YTM=18.38% Timelt NEXT PAGE EVIOUS PAGE Type here to search

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