You require a yield-to-maturity ytm of 7 pa on telstras
Telstra is selling 5 year bonds at a face value of $1,000,000 which pay a semi-annual coupon of 6% p.a.
You require a yield-to-maturity (YTM) of 7% p.a. on Telstra's bonds, what price are you willing to pay for each Telstra bond?
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