Answered: An investor bought an 8% bond at 106.…

An investor bought an 8% bond at 106. The bond would mature in 5 years. Compute the rate of yield to maturity. (Do not consider commission. Round answer to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 8P

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An investor bought an 8% bond at 106. The bond would mature in 5 years. Compute the rate of yield to maturity. (Do not consider commission. Round answer to two decimal places.)

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