What is the yield to maturity of a $1,000 par value 8 1/4% bond purchased for $950?

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What is the yield to maturity of a $1,000 par value 8 1/4% bond purchased for $950? Assume that the coupon is paid annually and the maturity is 13 years.

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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Posted Date: Mar 24, 2023 04:37 AM

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What is the yield to maturity of a $1,000 par value 8 1/4% bond purchased for $950?

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To calculate the yield to maturity YTM of a bond we need to solve for the discount rate that makes t... View the full answer

Introduction To Corporate Finance

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