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The market price is $1,125 for a 16-year bond ($1,000 parvalue) that pays 11 percent annual interest, but makes interest payments on a semiannual basis

The market price is

$1,125

for a

16-year

bond

($1,000

parvalue) that pays

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

(5.5

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

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