Question
QUESTION 17 A bond has a coupon rate of 8% and pays interest semi-annually. If the bond has a maturity of 20 years and is
QUESTION 17
A bond has a coupon rate of 8% and pays interest semi-annually. If the bond has a maturity of 20 years and is currently priced at $1,408.49, what is the annual yield to maturity of this bond?
| a. | 3.82% | |
| b. | 4.80% | |
| c. | 5.47% | |
| d. | 6.00% | |
| e. | 6.44% | |
| f. | 7.24% | |
| g. | 9.44% | |
| h. | 14.08% | |
| i. | The yield to maturity cannot be determined with the information given. |
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Public Finance In Canada
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
5th Canadian Edition
1259030776, 978-1259030772
