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A 6 year Circular Flle bond pays Interest of $40 annually and sells for $974. What are its coupon rate and yield to maturity?
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Answer #1

Coupon rate =40/1000 =4.0%

Yield to maturity:--

=RATE(nper,pmt,pv,fv)

=RATE(6,40,-974,1000)

=4.50%

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