Compute the yield to maturity of the bonds

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Reference no: EM131950024

Question: The Bubba Company issued some 8% coupon bonds two years ago for 103 percent of par (face value = $1000). The bonds make annual payments and mature 12 years from today. The price of each bond today is $982.00. Compute the following for these bonds.

(a) Yield to Maturity

b) If inflation is expected to be 6 percent, find the real effective annual yield.

Reference no: EM131950024

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