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    Canadian Pacific Limited's debentures: determine YTM

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    Recently the high and low market prices of Canadian Pacific Limited's debentures (4 %) were $790 and $475 respectively. Determine the yield-to-maturity of one of these debentures if it was purchased under the following conditions:

    a. at the high market price
    b. at the low market price

    © BrainMass Inc. brainmass.com June 3, 2020, 6:21 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/canadian-pacific-limited-s-debentures-determine-ytm-56998

    Solution Preview

    Since there is no maturity date, the yield to maturity is simply the coupon yield (4%) times the par value ...

    Solution Summary

    The solution explains the formulas and calculations to arrive at the correct answer.

    $2.19

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