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Question
The current market price of Smith Corporation's 10 percent, 10-year bonds is $1,297.58. A 10 percent coupon interest rate is paid semiannually, and the par value is equal to $1,000. What is the YTM (stated on a simple, or annual, basis) if the bonds mature 10 years from today?
a. 8%
b. 6%
c. 4%
d. 2%
e. 1%
Answer
This answer is hidden. It contains 147 characters.
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