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Crane Optical Bond - YTM

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Bonds issued by the Crane Optical Company have a par value of $1, 000 which is also the amount of principal to be paid at maturity. The bonds are currently selling for $850. They have 10 years remaining to maturity. The annual interest payment is 9 percent ($90). Compute the approximate yield to maturity, using Formula 10-2 on page 277. Formula for Bond Yield.

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