Question
Bond A offers a coupon rate of 12%, has a remaining life of 10 years and a face value of $1,000. Coupon payments for Bond
Bond A offers a coupon rate of 12%, has a remaining life of 10 years and a face value of $1,000. Coupon payments for Bond A are paid semi-annually. If the current price of Bond A is $1,020.00, what must be the market yield to maturity?
| a. | 5.83% |
| b. | 11.66% |
| c. | 11.74% |
| d. | 12.00% |
| e. | 13.72% |
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
10th Edition
0201785676, 9780201785678
