Question you buy a bond for 970 that has a coupon rate of, Ask an Expert

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Question: You buy a bond for $970 that has a coupon rate of 7.0% and a 9-year maturity. A year later, the bond price is $1,120. (Assume a face value of $1,000 and annual coupon payments.)

a. What is the new yield to maturity on the bond?

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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