P7-7 Bond Yields [LO2]

Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 10.6 percent. The bonds make semiannual payments. If these bonds currently sell for 100 percent of par value, what is the YTM?

rev: 09_18_2012

Multiple Choice

• 9.54%

• 11.66%

• 12.72%

• 5.30%

• 10.60%