Problem

BCC has bonds that trade frequently, pay a 7.75 percent coupon rate, and mature in 2019....

BCC has bonds that trade frequently, pay a 7.75 percent coupon rate, and mature in 2019. The bonds mature on March 1 in the maturity year. Suppose an investor bought this bond on March 1, 2014, and assume interest is paid annually on March 1. Calculate the yield-to-maturity assuming the investor bought the bond at the following price, as quoted in the financial press:

a. 100

b. 90

c. 105

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