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A bond has just been issued. The bond is currently selling for $1050. The bond will...

  1. A bond has just been issued. The bond is currently selling for $1050. The bond will mature in 7 years. The bond’s annual coupon rate is 16% and the face value of the bond is $1,000. Coupons will be paid semi-annually. Excel
    1. Compute the bond’s annual yield to maturity.
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COUPON RATE 16.00% YEARS TO MATURITY NPER 14 (years to maturity x 2) PMT 80 (face value x coupon rate)/2 FACE VALUE $1,000.00

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