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The Bevis and B-head company just issued bonds with an original maturity of 30 years. The face value of the bonds is $1,000. The bonds
The Bevis and B-head company just issued bonds with an original maturity of 30 years. The face value of the bonds is $1,000. The bonds have an 11 percent annual coupon. You are considering purchasing one of the bonds at a price of $950. You wish to know the rate of return you will be earning on the bonds. Compute the yield to maturity for this bond.
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