Question: Fitzgerald ' s 1 5 - year bonds pay 1 2 percent interest annually on a $ 1 , 0 0 0 par value. If

Fitzgerald's 15-year bonds pay 12 percent interest annually on a $1,000 par value. If the bonds sell at $895, what is the bond's yield to maturity? What would be the yield to maturity if the bonds paid interest semiannually? Explain the difference.

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