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What is the yield to maturity on the bond today

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Question - You buy an 10% coupon, paid annually, 9-year maturity bond for $970. A year later, the bond price is $1,020. Face value of the bond is $1,000.

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

b. What is the yield to maturity on the bond in one year?

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

Reference no: EM133118792

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