Question
A corporate bond maturing in 5 years is currently trading at $96.304. The coupon rate on the bond is 10% and coupons are paid annually.
A corporate bond maturing in 5 years is currently trading at $96.304. The coupon rate on the bond is 10% and coupons are paid annually. Based on this information, the yield to maturity on this bond is closest to:
a. 9%
b. 10%
c. 10.5%
d. 11.0%
e. non of the above
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
