Question
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.00% APR. The bonds pay semi-annual coupons, have a face value
Cinqua Terra Incorporated issued 10-year bonds three years ago with a coupon rate of 7.00% APR. The bonds pay semi-annual coupons, have a face value of $1,000 each and were issued at par value. Cinqua Terra bonds currently trade at $1,107.00.
Based on the 6-month return, what is the yield to maturity (as an APR) for holding the bond?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
