Question
2) A $1000 par value bond with maturity of 4 years pays annual coupon interest of $75 and is selling today at a $127 premium
2) A $1000 par value bond with maturity of 4 years pays annual coupon interest of $75 and is selling today at a $127 premium to par value. The yield-to-maturity of this bond is
a) 4.00%
b) 5.50%
c) 6.65%
d) 8.00%
e) cannot be determined from the information given
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
8th Edition
0324259700, 978-0324259704
