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New yield to maturity on the bond

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Reference no: EM131075105

You buy a(n) 5.5% coupon, 8-year maturity bond for $985. A year later, the bond price is $1,160.

a. What is the new yield to maturity on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What is your rate of return over the year? (Round your answer to 2 decimal places.)

Reference no: EM131075105

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