Now it's time for you to practice what you've learned. Suppose your friend is debating...
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Now it's time for you to practice what you've learned. Suppose your friend is debating purchasing a bond that has a $1,000 par value, 12 years to maturity, and a 6% annual coupon. Your friend would like to determine the yield to maturity if the bond sells for a price of $943. What is the yield to maturity for this bond? 5.15% 5.57% 6.71% 7.83% Assume the yield to maturity remains constant over the next four years. What will the price of the bond be four years from now? $943 $957.33 $1,040.91 $1,060
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