Question: American Computer Inc. (AMI) and US Computer Inc. (USC) are in the same risk class. Both companies have bonds outstanding that have 15 years to
American Computer Inc. (AMI) and US Computer Inc. (USC) are in the same risk class. Both companies have bonds outstanding that have 15 years to maturity. The only difference in these bonds is that AMI bond has a coupon of $80, while USC bond has a coupon of $70? Both bonds pay coupon semiannually. The AMI bond is selling for $1,044.57. What is the yield to maturity (YTM) of the AMI bond
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