question10

A firm's bonds have a maturity of 8 years and a $1,000 face value. These bonds pay a semi-annual coupon rate of 3% and currently sell for $969.34. The bonds are callable in 2 years at a call price of $1,030.00. What is the yield to maturity (rTM) on these bonds? (A) 1.72% (B) 3.44% (C) 4.50% (D) 4.65% 4.78%