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XYZ Inc. has a corporate income tax rate of 30%. The preferred shares of XYZ have a total market value of $2.0 million. XYZ has
XYZ Inc. has a corporate income tax rate of 30%.
The preferred shares of XYZ have a total market value of $2.0 million.
XYZ has a single $1,000.00 Bond issued and outstanding. The Bond was issued on January
1, 2000, and will expire five (5) years from now. The Bond pays semi-annual interest in an amount of $40.00. The Bond currently trades at $925.00
Required: Calculate the yield on the Bond. Show calculations.
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