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Tonys Pizzeria plans to issue bonds with a par value of $1,000 and 15 years to maturity. These bonds will pay $100 interest every year.

Tonys Pizzeria plans to issue bonds with a par value of $1,000 and 15 years to maturity. These bonds will pay $100 interest every year. Current market conditions are such that the bonds will be sold to net $1020. What is the yield to maturity (YTM) of this bond?

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