Question
A few years ago, Spider Web, Inc. issued bonds with a10.4percent annual coupon rate, paid semiannually. The bonds have a par value of $1000, have
A few years ago, Spider Web, Inc. issued bonds with a10.4percent annual coupon rate, paid semiannually. The bonds have a par value of $1000, have a current price of $702, and will mature in6years. What will the annual yield to maturity be on the bond if you purchase the bond today?
Round the answers to two decimal places in percentage form. Use Excel or a financial calculator.
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
