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What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20?
What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does the fact that a bond sells at a discount or at a premium tell you about the relationship between the required rate of return and the bond's coupon rate? What is the yield-to-maturity of the bond?
Thanks in advance. Please give step-by-step on how you arrived at your answer.
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