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Question
A bond has a face value of $1,000 and five years to maturity. This bond has a coupon rate of 13 percent and is selling in the market today for $902. Coupon payments are made annually on this bond. What is the yield to maturity (YTM) for this bond?
A. 13 percent
B. 12.75 percent
C. 16 percent
D. 11.45 percent
E. 12 percent
Answer
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