Question
The yield to maturity on a $1000 face value coupon bond is 7.13% when the market price of the bond is $1,200. If the market
The yield to maturity on a $1000 face value coupon bond is 7.13% when the market price of the bond is $1,200. If the market price of the bond is $1,100 instead,
A) no conclusion can be drawn about the yield to maturity it can be any number.
B) the yield to maturity is still equal to 7.13%.
C) the yield to maturity is lower than 7.13%.
D) the yield to maturity is higher than 7.13%.
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Building Financial Models
Authors: John Tjia
2nd Edition
0071608893, 978-0071608893
