Question
Consider the following information on a non-callable bond: Annual coupon payments (C)= $120, Face value of bond (F) = $1000, Maturity date = 14 years,
Consider the following information on a non-callable bond:
Annual coupon payments (C)= $120, Face value of bond (F) = $1000, Maturity date = 14 years, Current price of bond (Pm) = $1200. The reinvestment rate for coupons for years 1-14 is 8%. What is the yield to maturity (YTM) of this bond?
| 9.376 | ||
| 8.795% | ||
| 7.965% | ||
| 8.255% |
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Personal Finance
Authors: E Thomas Garman, Raymond Forgue
11th Edition
1111531013, 9781111531010
