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A 6.85 percent coupon bond with 18 years left to maturity is offered for sale at...

A 6.85 percent coupon bond with 18 years left to maturity is offered for sale at $1,025.30. What yield to maturity is the bond offering? (Assume interest payments are semiannual.) (Round your answer to 2 decimal places.) Yield to maturity %

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Answer #1

Since, the coupon payments are semi-annual, the rate is multiplied by 2 to get the yield to maturity.

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