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You want to buy a five year bond with $1,000 par value. The bond pays interest semi-annually and carries a 7% coupon. The price is
You want to buy a five year bond with $1,000 par value. The bond pays interest semi-annually and carries a 7% coupon. The price is $925.00 today. What is your expected yield to maturity? \begin{tabular}{|c|} \hline 8.89% \\ \hline 4.12% \\ \hline 8.92% \\ \hline 4.45% \\ \hline \end{tabular}
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