Question
A 10% coupon bond maturing in 10 years that requires annual payments is expected to make all coupon payments but to pay only 50% of
A 10% coupon bond maturing in 10 years that requires annual payments is expected to make all coupon payments but to pay only 50% of par value at maturity. What is the expected yield on this bond if the bond is purchased for $975?
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11.00%
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6.68%
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10.00%
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8.68%
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None of the options are correct.
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
