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An aerospace company needs to raise capital for new expenditures. It plans to sell 10,000 10-year bonds, each with face value of $10,000, to the public. The coupon rate will be 8% (annual) with payments made semi-annually. However, due to the strength of the company, it will offer the bonds at a premium of $10,300 each. What is the annual yield to maturity of this bond?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M972706

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