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Stellar Corp. recently issued $100 par value deferred coupon bonds, which will make no coupon payments in the next four years. Regular annual coupon payments at a rate of 8% will then be made until the bonds mature at the end of 10 years. If the bonds are currently priced at $87.00, their yield to maturity is closest to:

  1. 6.0%.
  2. 8.0%.
  3. 10.1%.

How to use calculator to calculate this YTM

Business Economics, Economics

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