Question
WorldTravel has a 20-year semiannual bond issued 2 years ago. The bond has a coupon rate of 7% and a par value of $1,000. If
WorldTravel has a 20-year semiannual bond issued 2 years ago. The bond has a coupon rate of 7% and a par value of $1,000. If you require a 9% nominal yield to maturity on the bond, what is the bond's current yield?
Question 8 options:
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| A) | 8.50% |
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| B) | 10.93% |
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| C) | 9.89% |
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| D) | 8.58% |
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Financial Management Core Concepts
Authors: Raymond M Brooks
2nd edition
132671034, 978-0132671033
