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Question: You are considering the purchase of a coupon bond with a face value of $1,000, which matures in 18 years, and pays 4.75% (annual) coupons. If the current market price of the bond is $970.78, estimate the Yield-to-Maturity (YTM) of the instrument. What is the YTM if the coupons are paid semi-annual?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92798744

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