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    Bonds : Yield to Maturity

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    If a bond is selling in the open market for $1,850.00, with a par value of $1000 and a coupon rate of 10%, we can say:

    a. The YTM (Yield to Maturity) of the bond is significantly higher than 10%
    b. The YTM of the bond is significantly lower than 10%
    c. The YTM of the bond is equal to 10%
    d. None of these is true.

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    Solution Preview

    Bond Selling At . . . Satisfies This Condition
    Discount Coupon Rate < Current Yield < ...

    Solution Summary

    Bonds and YTM are investigated.