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27 January, 12:50

The bonds issued by manson amp; son bear a coupon of 6 percent, payable semiannually. the bond matures in 15 years and has a $1,000 face value. currently, the bond sells at par. what is the yield to maturity?

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  1. 27 January, 16:42
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    The Yield to maturity is 6%

    Explanation:

    As we know

    If a bond is selling at a discount, the bond's coupon rate is less than its YTM. If a bond is selling at a premium, the bond's coupon rate is more than its YTM. If a bond is selling at a par, the bond's coupon rate is equal to its YTM.

    So, the given bond is selling at par

    Yield to maturity = Bond Coupon Rate

    Yield to maturity = 6%
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