Question: Solve the problem using interpolation method 12. A $1,000 bond has a coupon rate of 8% p.a. and will repay its nominal value when it

Solve the problem using interpolation method

12. A $1,000 bond has a coupon rate of 8% p.a. and will repay its nominal value when it matures in 4 years' time. The bond will be purchased today for $900 ex interest and held until maturity. Calculate, to the nearest 0.1%, the YTM for the bond based on today's purchase price: *

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