Bond with par value-what is its yield to maturity

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You own a bond with a par value of $1,000 and a coupon rate of 8.75% (semiannual coupon). You know it has a current yield of 8.75%. What is its yield to maturity? The bond has 7 years to maturity. Current Yield = (annual payment / price). (hint: solve for price to answer the question).

Reference no: EM131601914

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