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A Treasury bond with the longest maturity (30 years) has an ask price quoted at 106.9375....

A Treasury bond with the longest maturity (30 years) has an ask price quoted at 106.9375. The coupon rate is 3.10 percent, paid semiannually. What is the yield to maturity of this bond?

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Expert Solution

ASSUMED FACE VALUE OF $100. AS WE HAVE TO CALCULATE YTM, FACE VALUE CAN BE TAKEN $100 OR $1000.

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