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1.). Co.has 7% coupon rate bonds, 9-year maturity. Payments are annual. Face value is $1,000. If...

1.). Co.has 7% coupon rate bonds, 9-year maturity. Payments are annual. Face value is $1,000.

If the price=$1,038.50, what's the YTM? Note that PMT and FV have the same sign, while PV has the opposite sign in Excel. See the practice. (Round your answer to 2 decimal places

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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

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