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Tim owns investment A and 1 bond B. The total value of his holdings is $4300. Investment A is expected TO PAY ANNUAL CASH FLOWS
Tim owns investment A and 1 bond B. The total value of his holdings is $4300. Investment A is expected TO PAY ANNUAL CASH FLOWS TO Tim OF $650 per year with the first annual cash flow expected later today and the last annual cash flow expected in six years from today. Investment A has an expected return of 13.81 percent. Bond B pays semi annual coupons, matures in fifteen years, has a face value of $1000, has a coupon rate of 9.60 percent, and pays its net coupon in six months. What is the yield to maturity for bond B?
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