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Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity;

Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value bond paying 8 percent interest semiannually. The market price of the bond is $850.

Find the yield-to-maturity of the bond.

A. 8.46%

B. 9.13%

C.9.5%

D.10.45%

E.12.20%

Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value zero coupon bond. The market price of the bond is $850.

Find the value of the bond to you.


A.

$395.60

B.

$422.41

C.

$550.12

D.

$590.90

E.

$605.12

image text in transcribed
Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value bond paying 8 percent interest semiannually. The market price of the bond is $850. Find the yield-to-maturity of the bond. A. 8.46% O B.9.13% O C.9.5% O D.10.45% O E.12.20% QUESTION 2 10 points Save Answer Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity, it is a $1,000 par value zero coupon bond. The market price of the bond is $850. Find the value of the bond to you. O A. $395.60 B. $422.41 O C.$550.12 OD.$590.90 E. $605.12

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