What is the yield to maturity on a 10-year, 9 percent annual coupon, $1,000 par value bond that sells for:
(i) $887.00?

(ii) That sells for $1,134.20?

(iii) What does the fact that a bond sells at a discount or at a premium tell you about the relationship between required rate of return and the bond’s coupon rate?

Answer rating: 100% (QA)

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