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You want to invest in zero coupon bonds. You are looking at a fifteen-year zero-coupon that mature on 8/30/33, and which you want to buy
You want to invest in zero coupon bonds. You are looking at a fifteen-year zero-coupon that mature on 8/30/33, and which you want to buy today. It has a face value of $1,000, and its price is $948.20. If the one-year risk-free rate is 3.75%, what is the bonds YTM?
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