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Problem based on bond pricing

Problem 1. Bond Pricing. A 30-year maturity bond with face value $1,000 makes annual coupon payments and has a coupon rate of 8 percent. What is the bond's yield to maturity if the bond is selling for

a. $900
b. $1,000
c. $1,100

Problem 2. Bond Pricing. Repeat the previous problem if the bond makes semiannual coupon payments.

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Finance Basics: Problem based on bond pricing

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