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The market price is $1,075 for a 20-year bond ($1,000 par value) that pays 8 percent annual interest, but makes interest payments on a semiannual

The market price is

$1,075

for a

20-year

bond

($1,000

par value) that pays

8

percent annual interest, but makes interest payments on a semiannual basis

(4

percent semiannually). What is the bond's yield to maturity?

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