Question
Suppose you read that a bond with a face value of $1,000 and a coupon of $80 per year has a yield to maturity of
Suppose you read that a bond with a face value of $1,000 and a coupon of $80 per year has a yield to maturity of exactly 8%. How many years remain until maturity?
I. Greater than 20 years.
II. Greater than 10 years but less than 20.
III. Less than 10 years.
- A.III only
- B.II only
- C.I only
- D.Cannot be computed since price is not given
- E.I, II, or III may be correct
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Case Studies in Finance Managing for Corporate Value Creation
Authors: Robert F. Bruner, Kenneth Eades, Michael Schill
7th edition
007786171X, 77861711, 978-0077861711
