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    Computing the Coupon Rate and Yield to Maturity

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    A 5-year Circular File bond pays interest of $60 annually and sells for $988. What are its coupon rate and yield to maturity? (Do not round intermediate calculations. Round "Coupon rate" to 1 decimal place and "Yield to maturity" to 2 decimal places.)

    Coupon rate %

    Yield to maturity %.

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    Solution Summary

    This solution illustrates how to compute a bond's coupon rate and its yield to maturity.