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What is the new yield to maturity on the bond

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Reference no: EM132395554

You buy a bond for $970 that has a coupon rate of 7.00% and a maturity of 9-years. A year later, the bond price is $1,120. (Assume a face value of $1,000 and annual coupon payments.)

a. What is the new yield to maturity on the bond?

b. What is your rate of return over the year?

Reference no: EM132395554

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