Bcc has issued 8 percent debentures that will mature on


BCC has issued 8? percent debentures that will mature on July 15, 2034. Assume that interest is paid and compounded annually. If an investor purchased a $1,000 denomination bond for $1,025 on July 15, 2014, determine the bond’s yield-to-maturity. Explain why an investor would be willing to pay $1,025 for a bond that is going to be worth only $1,000 at maturity.

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Financial Management: Bcc has issued 8 percent debentures that will mature on
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