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XYZ owns investment A and 1 bond B. The total value of his holdings is $2,200. Investment A is expected to pay annual cash flows
XYZ owns investment A and 1 bond B. The total value of his holdings is $2,200. Investment A is expected to pay annual cash flows to XYZ of $200 per year with the first annual cash flow expected later today and the last annual cash flow expected in 6 years from today. Investment A has an expected return of 17.40 percent. Bond B pays semi-annual coupon, matures in 9 years , has a face value of $1000, has a coupon rate of 9.80 percent and pays its next coupon in 6 months. What is the yield-to-maturity for bond B?
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