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Finance question show the steps and answer

  • From Mathematics, General Mathematics
  • Due on 11 Nov, 2019 11:11:00
  • Asked On 10 Nov, 2019 10:14:53
  • Due date has already passed, but you can still post solutions.
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1. An investor is considering purchasing a bond with a 7.89 percent coupon interest rate, a par value of $1,000, and a market price of $1019.06. the bond will mature in nine years. Based on this information, answer the following questions:

a.       What is the bond’s current yield?

b. What is the​ bond's approximate yield to​ maturity?

c. What is the​ bond's yield to maturity using a financial​ calculator?

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[Solved] Finance question show the steps and answer

  • This Solution has been Purchased 1 time
  • Submitted On 11 Nov, 2019 07:20:06
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(a) current yield =[ 1000*7.89/1019.06] = 7.74 % (b) approxi...
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