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Adams Food Service has issued 9 1/8 percent bonds that mature on July 15, Year 33....

Adams Food Service has issued 9 1/8 percent bonds that mature on July 15, Year 33. The bonds are callable at $1,023.03 on July 15, Year 5. Assume that interest is paid and compounded annually. Determine the yield-to-maturity if an investor purchased a $1,000 denomination bond for $850 on July 15, Year 1. Round your answer to two decimal places. %

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Answer #1

We see that the yield to maturity is given as=RATE(32,9.125%*1000,-850,1000)
=10.8095%

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