Considering the purchase of bond issued

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Reference no: EM131949864

You are considering the purchase of a bond issued by the ABC Company. This is a new issue which will have 10 years to maturity. The bond carries a 14% coupon but the price at which it will be offered has yet to be determined. Your broker thinks that the bonds will be sold at $900 each. If she is correct, what will be your yield to maturity if you purchase the ABC bond?

Reference no: EM131949864

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