A bank purchased bonds for 1025 million that has a par, Financial Management

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A bank purchased bonds for 1025 million that has a par

A bank purchased bonds for 102.5 million that has a par value of $100 million. The bonds have three years to maturity. The coupon rate is 12 percent.

a. Calculate the yield to maturity on these bonds.

b. Using your answer to part a, compute the duration of this bond.

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Financial Management: A bank purchased bonds for 1025 million that has a par

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Financial Management: A bank purchased bonds for 1025 million that has a par

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