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You are looking to purchase a zero coupon bond. The bond has 10 years until maturity and you require an 8% annual rate of return. What should you pay for this bond?

You just purchased a bond for $974.42 that matures in 5 Years. The bond was originally issued at par and had an annual coupon rate of 10%. Calculate the current yield and yield to maturity on the bond you just purchased.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91772173

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