Computation of yield to maturity using various quoted price

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Reference no: EM1310718

Computation of yield to maturity using various quoted price in the financial press.

AT&T Corporation has several issues of bonds outstanding. One of the outstanding bonds has a 5 percent coupon and matures in 2004. The bonds mature on April 1 in the maturity year. Suppose an investor bought this bond on April 1, 1999, and assume interest is paid annually on April 1. Compute the yield to maturity assuming the investor buys the bond at the following price, as quoted in the financial press-

1. 100

2. 90

3. 105

Reference no: EM1310718

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