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%
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%
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 10PROB
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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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