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    Yield of maturity

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    What would be my bond value that is 1,000 par value outstanding at 8 percent and the bond will maturer in 25 years. I need to know the present yield of maturity at 7 percent 10 percent and 13 percent.

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    Solution Preview

    The price of the bond is the present value of interest and principal. The annual interest is 1,000X8%=$80 and is an annuity and the present value can be found ...

    Solution Summary

    The solution explains how to calculate the yield of maturity on a bond.