Question: A bond is purchased for $7,600 with a face value $9,000 and redemption value $10,000 in 5 years a) Calculate the coupon rate needed for

A bond is purchased for $7,600 with a face value $9,000 and redemption value $10,000 in 5 years

a) Calculate the coupon rate needed for a desired yield of 8%

b) Approximate the yield if the coupon rate is 5%

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