Precise trial-and error present-value base approach

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Ed’s Company bonds currently sell for $945, have a 13% coupon rate, pay interest annually, have a $1,000 par value, with 10 year remaining to maturity. a. Calculate the yield to maturity using the more precise trial-and error present-value base approach. (Your approximate yield answer for part (a) will be slightly below the lower end of the range to start your trial and error bond value calculations using the trial-and –error method, so round up this number before starting this question.)

Reference no: EM131444369

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