A 7 - year - to - maturity, quarterly bond is currently trading at $ 1 ,

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Question:

7 -

year

-

-

maturity, quarterly bond is currently trading at $

1, 080 .

The YTM is

4 % .

What was the interest rate at the time of issuance

13

years ago, assuming the bond was issued at par?

Posted Date: May 13, 2024 02:32 AM

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A 7 - year - to - maturity, quarterly bond is currently trading at $ 1 ,

Question:

Expert Answer:

To determine the interest rate at the time of issuance we can use the bonds yield to maturity YTM an... View the full answer

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