Question 7

Keyser Materials has 9 percent coupon bonds on the market with 15 years to maturity. The bonds make semiannual payments and currently sell for 93 percent of par. What is the effective annual yield (i.e. effective annual rate) on Keyser Materials bonds?

Group of answer choices

10.15 percent

9.91 percent

7.23 percent

5.01 percent

4.95 percent