Find the exact yield to maturity and approximate yield

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The Pioneer Petroleum Corporation has a bond outstanding with an $100 annual interest payment, a market price of $890, and a maturity date in five years. Assume the par value of the bond is $1,000.

Problem 1: Find the following: (Use the approximation formula to compute the approximate yield to maturity and use a calculator or Excel to compute the exact yield to maturity. Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

a. Coupon rate = %
b. Current yield = %
c-1. Approximate yield to maturity = %
c-2. Exact yield to maturity = %

Reference no: EM132955509

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