Par Value	$	1,000
Time to Maturity		18		Years
Coupon		9	%	(paid annually)
Current price	$	917.99
Yield to Maturity		12	%

Given the bond described above, if interest were paid semi-annually (rather than annually) and the bond continued to be priced at $917.99, the resulting effective annual yield to maturity would be

Multiple Choice

• less than 10%.

• more than 10%.

• 10%.

• Cannot be determined.