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You are analyzing the cost of debt for a firm. You know that the firm's 1 4 - year maturity, 8 . 6 percent coupon

You are analyzing the cost of debt for a firm. You know that the firm's

14 -

year maturity,

8.6

percent coupon bonds are selling at a price of $

836.00 .

The bonds pay interest semiannually. If these bonds are the only debt outstanding, answer the following questions. What is the current YTM for the bonds?

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