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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

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    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.