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# Bond Maturity and Annual Coupon Payment

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Consider some bonds with one annual coupon payment of 7.25%. The bonds have a par value of \$1,000, a current price of \$1,125, and they will mature in 13 years. What is the yield to maturity on these bonds?

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## Bond's Yield to Maturity and Annual Coupon Payments

A bond with a \$1,000 face value and 3 years remaining to maturity. It currently sells for \$949.37 and makes annual coupon payments at a rate of 7% (that is, it pays \$70 in interest each year). The first interest payment is due one year from today. What is this bond's yield to maturity?

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