Question
Tesla would like to issue 40 year, 6.8% coupon bonds, paid monthly, with a principal of $100. What is the annual YTM of these bonds
Tesla would like to issue 40 year, 6.8% coupon bonds, paid monthly, with a principal of $100. What is the annual YTM of these bonds if the fair price of the bond is $99.00?
a. 0.6%
b. 6.9%
c. 5.3%
d. 4.2%
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International Money and Finance
Authors: Michael Melvin, Stefan C. Norrbin
8th edition
978-8131234136, 123852471, 978-0123852472
