Maturity determine the overall yield

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The MKS corporation issues a $1000 bond with coupons at j2 = 8% and redeemable at par on 1st Aug 2027.

  1. How much should be paid for this bond on 1st Feb 2012 to yield j2 = 10%
  2. If the purchase price was $1050 and the bond is held to maturity determine the overall yield, j2.

Reference no: EM131044580

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