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The bonds of company ABC are traded on the secondary market. The coupon rate is 8% per annum, with interest payments made every 6 months.
The bonds of company ABC are traded on the secondary market. The coupon rate is 8% per annum, with interest payments made every 6 months. The bonds mature in 12 years, and the current market price is $980. The face value is $1,000. Calculate the current yield on these bonds. Derive the formula that calculates their yield to maturity without calculating it. What did the concept of "yield to maturity" show?
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