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It is now January 2, 2012, and you are considering the purchase of an outstanding Puckett Corporation bond that was issued on January 4, 2010. The...

It is now January 2, 2012, and you are considering the purchase of an outstanding Puckett Corporation bond that was issued on January 4, 2010. The Puckett bond has a 9.5 percent annual coupon and a 30-year original maturity (it matures on December 30, 2039). Interest rates have declined since the bond was issued, and the bond is currently selling for $1,165.75. What is the yield to maturity in 2012 for the Puckett bond? The bond's face value is $1,000.
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If you understand bonds, you realize that the bond is an annuity that will pay $95 a year for the next 27 years, and then will pay the $1,000 face value. Because interest rates have declined, below...

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