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P&G Corporations bond carries a 8.75 percent coupon, pays interest annually, and has 17 years to maturity. What is the bond's yield to maturity to
P&G Corporations bond carries a 8.75 percent coupon, pays interest annually, and has 17 years to maturity. What is the bond's yield to maturity to the investor if the investor purchases the bond at the price quoted at 106.25 in the financial press?(NOTE: It's discussed in class that the bond price is quoted as % of the face value of the bond. The typical face value of a corporate bond is $1000.) (Points : 3.5) |
8.06%. 9.98%. 6.77%. 7.29%.
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