Determine the yield to maturity

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Reference no: EM131338558

McDonald's has issued 7 3⁄8 percent bonds that mature on July 15, 2036. The bonds are callable at $1,037.08 on July 15, 2011.

Assume that interest is paid and compounded annually. Determine the yield to maturity (to the nearest 10th of 1 percent) if an investor purchases a $1,000 denomination bond for $900 on July 15, 2004.

Reference no: EM131338558

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