Question
A bond is currently priced at $790 on a par value of $1,000. Its term to maturity is 9 years and its coupon rate is
A bond is currently priced at $790 on a par value of $1,000. Its term to maturity is 9 years and its coupon rate is 6% (stated annually, paid semiannually). If you buy the bond, and hold it to maturity, what would be the yield to maturity?
| A. | 11.00% | |
| B. | 9.53% | |
| C. | 6.00% | |
| D. | 7.90% |
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen
2nd Edition
0538473452, 9780538473453
