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The appropriate discount rate for cash flows received one year from today is 11 percent. The appropriate annual discount rate for cash flows received two
The appropriate discount rate for cash flows received one year from today is 11 percent. The appropriate annual discount rate for cash flows received two years from today is 14 percent.
a. What is the price of a two-year bond that pays an annual coupon of 6 percent? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)
Price of a two-year bond $
b. What is the YTM of this bond? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
YTM %
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