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Bavarian Sausage just issued a 8-year 9% coupon bond. The face value of the bond is $1,000 and the bond makes annual coupon p
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Answer #1

Annual coupon=1000*9%=90

Approx Yield to maturity=[Annual coupon+(Face value-Present value)/time to maturity]/(Face value+Present value)/2

=[90+(1000-1082.10)/8]/(1000+1082.10)/2

=0.0759(Approx).

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