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Assume Bank of Montreal Has Two Zero-Coupon Bonds Outstanding,each for a Face

Question 23

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Assume Bank of Montreal has two zero-coupon bonds outstanding,each for a face value $100,000,000.Bond A matures in 10 years and sells at a discount of 35% off face value and bond B matures in 20 years and sells at a discount of 60% off face value.Calculate the implied yield to maturity of each bond.

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Bond A:
650,000,000(1 + i)10 = 1...

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