Question: FOR THIS AND THE NEXT 2. A bond rated AAA has a current market price of $800, a coupon interest rate of 10%, and a

FOR THIS AND THE NEXT 2. A bond rated AAA has a current market price of $800, a coupon interest rate of 10%, and a 10-year maturity. Interest is paid SEMIANNUALLY. If the bond's par value is $1,000, what is its yield to maturity (YTM)?

Question options:

1)

6.82%

2)

13.74%

3)

14.74%

4)

None of the above

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