Suppose a 7 coupon bond maturing in 15 years is trading for


Suppose a 7% coupon bond maturing in 15 years is trading for 90 (90% of par). What is the yield to maturity on the bond? Suppose the bond in previous question is selling at par. What is the YTM? What is your effective annual return if you are able to reinvest the coupons at an annual rate of 4%?

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Financial Management: Suppose a 7 coupon bond maturing in 15 years is trading for
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