Question: Problem 1 ( 7 marks ) Tony's Tires Inc. ( TTI ) has bonds outstanding with a par value of $ 1 , 0 0

Problem 1(7 marks)
Tony's Tires Inc. (TTI) has bonds outstanding with a par value of $1,000, and a current market price of $1,200. The annual coupon rate on these bonds is 6%(semi-annual coupons) and they mature in 2.5 years. Jess purchased a TTI bond exactly 3 years ago for $965. If Jess holds the bond until it matures, what will be her yield to maturity?
Problem 1 ( 7 marks ) Tony's Tires Inc. ( TTI )

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