A 20-year Amazon bond pays 9% interest annually on a $ 1,000 par value. If the bond currently sells for $ 945, what is the bond's yield to maturity? a. 9.63% b. 9.00% c. 10.63% d. 20%

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
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A 20-year Amazon bond pays 9% interest annually on a $ 1,000 par value. If the bond currently sells for $ 945, what is the bond's yield to maturity?

a. 9.63%

b. 9.00%

c. 10.63%

d. 20%

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