Question
#4. Two years ago, Trans-Atlantic Airlines sold $250 million worth of bonds at $1,000 each. These semi-annual bonds had a maturity of 12 years and
#4. Two years ago, Trans-Atlantic Airlines sold $250 million worth of bonds at $1,000 each. These semi-annual bonds had a maturity of 12 years and a coupon rate of 12.5%. Today these bonds are selling for $1,000. Determine the yield-to-maturity.
A. 13.24%
B. 5.59%
C. 13.72%
D. 10.84%
Please show work or calculator inputs.
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International Finance
Authors: Keith Pilbeam
5th Edition
1350347094, 978-1350347090
