If an investor purchases a 1000 denomination bond for 1025, Financial Management

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If an investor purchases a 1000 denomination bond for 1025

American Telephone & Telegraph has issued 81⁄8 percent debentures that will mature on July 15, 2024. Assume that interest is paid and compounded annually.

If an investor purchases a $1,000 denomination bond for $1,025 on July 15, 2004, 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: If an investor purchases a 1000 denomination bond for 1025

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Financial Management: If an investor purchases a 1000 denomination bond for 1025

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