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Calculate the yield to maturity

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Question - You are considering the purchase of a $1,000 face value bond that pays 11 percent coupon interest per year, paid semi-annually (i.e., $55 (= $1,000(.11)/2) per semi-annual period). The bond matures in 15 years and has a face value of $1,000. If the current market price of the bond is $931.176, calculate the yield to maturity, or E(r b). Present your formula, show your solution and highlight your answer.

Reference no: EM133185769

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