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QUESTION 11 The 8 percent semiannual coupon bonds of IPO, Inc., are selling for $1,050. The...

QUESTION 11 The 8 percent semiannual coupon bonds of IPO, Inc., are selling for $1,050. The bonds have a face value of $1,000 and mature in 3 years. What is the yield to maturity? 3.07 percent 5.70 percent 6.15 percent 5.42 percent 3.68 percent.

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Answer #1

Yield to maturity is market interest rate which is used to calculate current price of bond by discounting future cash flows of bond

Calculation of yield to maturity is given below

Following shows the working

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