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You would like to purchase a bond, you find one listed at 85.25, with an annual coupon rate of 6.5%, that matures in 8 years.

  1. You would like to purchase a bond, you find one listed at 85.25, with an annual coupon rate of 6.5%, that matures in 8 years. Find the annual yield to maturity.
    1. If your required rate of return is 10% would you purchase this bond? Why or why not?

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