Yield to maturity of bond

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Reference no: EM13806689

Consider a 20 year, $1000 bond with a coupon rate of 9% and quarterly coupons. By looking at Bloomberg you can see that this bond has most recently traded at a price of $1462.62. Give two numbers (a,b) such that the yield to maturity of bond is between a and b, That is such that (a<=YTM<=b). Express (a,b) as APRs.

Reference no: EM13806689

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