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A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $960.

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Answer:

The bond equivalent YTM = 8.36%

Effective annual YTM = 8.53%

Step-by-step explanation:

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A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at-example-1
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