Question 6

Jack is planning to invest in a seven-year bond that pays annual coupons at a rate of 6 percent. It is currently selling at $927.23. The face value is $1,000. The current market yield on such bonds is closest to: (USE EXCEL or FINANCIAL CALCULATOR.)

Select one:

A. 10.4%

B. 9.5%

C. 8.4%

D. 7.4%