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    Finding the Yield of Maturity

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    Southern Bell has issued 4 3/8 percent bonds that mature on August 1, 2011. Assume that interest is paid and compounded annually. Determine the yield to maturity if an investor purchases a $1,000 denomination bond for $853.75 on August 1, 2004.

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    Southern Bell has issued 4 3/8 percent bonds that mature on August 1, 2011.
    Assume that interest is paid and compounded annually. Determine the ...

    Solution Summary

    This solution provides calculations in Excel for yield of maturity.

    $2.19

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