Yield to maturity and purchasing
Question: I am confused about purchasing a 10% bond and my broker keeps saying it has a 9% yield to maturity. Can you explain this for me?
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Assume the discount rate is equal to the after tax cost of new debt rounded up to the nearest whole number. Should Robinson Corporation refund the old issue?
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I am confused about purchasing a 10% bond and my broker keeps saying it has a 9% yield to maturity. Can you explain this for me?
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