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You buy an 8.5% coupon, paid annually, 15-year maturity bond for $965. A year later, the bond price is $1,075. Face value of the bond
You buy an 8.5% coupon, paid annually, 15-year maturity bond for $965. A year later, the bond price is $1,075. Face value of the bond is $1,000.
a. What is the yield to maturity on the bond today? (Round your answer to 2 decimal places.)
What is the yield to maturity on the bond in one year? (Round your answer to 2 decimal places.)
b. What is your rate of return over the year? (Round your answer to 2 decimal places.)
use a financial calculator to write the process to answer, please.
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