What is the yield to maturity

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Consider a 4-year annuity bond with annual cash payment of $100. It does NOT have a face value. Currently it sells for $316.98.

What is the yield to maturity? Then assuming that periodic cash flows are reinvested at 10% and the market interest rates remain the same for the entire 4 years, what is the total cash you will receive from the bond if you sell it in 4 years.

Can you please explain the solution to this question with a financial calculator. Thank you.

Reference no: EM132141200

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