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Consider a six-year, 10% coupon bond with a face value of $1000 that John bought for $980. 

(i). What is

the yield to maturity of this bond? (1 mark)

(ii). Suppose after holding it for one year, (and receiving one coupon payment), John sells it for $1050.  What is the return John got from holding this bond for one year? 

Top Answer

i). To find the YTM, we need to put the following values in the financial calculator: N = 6; PV =... View the full answer

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