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16 February, 10:47

John wong purchased a five-year bond today at $1,034.66. the bond pays 6.5 percent semiannually. what will be his yield to maturity?

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  1. 16 February, 14:40
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    Use this formula

    Price of Bond = [C [1 - (1+r) ^-2t] / r] + [F / (1+r) ^2t]

    The answer 5.7%
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