Question
The market price is $ 775 for a 17 year bond ($ 1,000 par value) that pays 9 percent annualinterest, but makes interest payments on
The market price is $775 for a 17 year bond ($1,000 par value) that pays 9 percent annualinterest, but makes interest payments on a semiannual basis (4.5
percentsemiannually). What is thebond's yield tomaturity?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
