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You buy a 6.6% coupon, 7-year maturity bond for $964.

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You buy a 6.6% coupon, 7-year maturity bond for $964. A year later, the bond price is $1,104. Assume coupons are paid once a year and the face value is $1,000.;a.;What is the new yield to maturity on the bond (one year from now)? (Do not round intermediate calculations. Round your answer to 2 decimal places.);Yield to maturity %;b.;What is your bond's rate of return over the year? (Round your answer to 2 decimal places.);Rate of return- %;Please provide step by step so I can learn how to do other questions like this. thank you;Additional Requirements;Level of Detail: Show all work

 

Paper#25842 | Written in 18-Jul-2015

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