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What is the yield to maturity of bond

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Reference no: EM132460503

Consider a six-year, 10% coupon bond with a face value of $1000 that John bought for $980.

(i). What is the yield to maturity of this bond?

(ii). Suppose after holding it for one year, (and receiving one coupon payment), John sells it for $1050. What is the return John got from holding this bond for one year?

Reference no: EM132460503

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