Question: 3 . ( 1 . ) What is the yield to maturity on a 1 0 - year, 9 percent annual coupon, $ 1 ,

3 . (1 .)

What is the yield to maturity on a

10 -

year,

9

percent annual coupon, $

1, 000

par value bond that sells for $

887.00 ?

That sells for $

1, 134.20 ?

What does the fact that a bond sells at a discount or at a premium tell you about the relationship between kd and the bond's coupon rate? What is the yield

-

-

maturity of the bond?

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