What is yield-to-maturity

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1. How much would you pay for a P&G Bond that pays a 5% coupon, matures in 20 years and the yield on current bonds are 4%?

2. Would you pay $895 for a Verizon Bond that pays a 4% coupon, matures in 15 years and current bonds are yielding 6%?

3. What is your yield-to-maturity if you buy a Duke Bond for $925? It pays a 5% coupon and matures in 8 years.

4. Redo question 3 assuming the bond is selling for $1,085.

Reference no: EM132646945

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