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Wonder Woman holds a Bond that has a $1,000 par value, it has 16 years to maturity, and the annual coupon rate is at 9.5%,
Wonder Woman holds a Bond that has a $1,000 par value, it has 16 years to maturity, and the annual coupon rate is at 9.5%, that sells for $1,080. (Answer the following two questions) (Show your calculations) (If using the business calculator, show the function buttons and the amounts). - What is its yield to maturity (YTM)? (10-points) - Assume that the yield to maturity remains constant for the next five years. What will the price be 5 years from today? (15points) (Hint, you will need to discount the remaining years from the original maturity time and plug in the YTM from the previous question) Edit View Insert
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