Question
Match the yield to maturity to the terms of the bond. All of these bonds pay interest twice a year. A $1,000 par value bond
Match the yield to maturity to the terms of the bond. All of these bonds pay interest twice a year.
"A $1,000 par value bond that matures in 6 years is currently selling for $909.40. The bond pays $55.00 of interest every six months."
"A $1,000 par value bond that matures in 6 years is currently selling for $1,036.82. The bond pays $62.00 every six months."
"A $1,000 par value bond that matures in 11 years is currently selling for $1,179.47. The bond pays $35.00 of interest every six months."
"A $1,000 par value bond that matures in 7 years is currently selling for $924.03. The bond pays $44.00 of interest every six months."
"A $1,000 par value bond that matures in 20 years is currently selling for $902.33. The bond pays $30.00 of interest every six months."
A. 13.24% B. 6.91% C. 11.53% D. 4.87% E. 10.35%
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