A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,129.00. The bond sells for $1,030.50. (Assume that the bond has just been issued.). What is it’s yield to maturity?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. A. 12.04% B. 7.99% C. 11.10% D. 10.38% E. 12.14%
A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,129.00. The bond sells for $1,030.50. (Assume that the bond has just been issued.). What is it’s yield to maturity?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. A. 12.04% B. 7.99% C. 11.10% D. 10.38% E. 12.14%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 7-year, 11.00% semiannual coupon bond with a par value of $1000 may be called in 5 years at a call price of $1,129.00. The bond sells for $1,030.50. (Assume that the bond has just been issued.). What is it’s yield to maturity?
Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72.
A. 12.04%
B. 7.99%
C. 11.10%
D. 10.38%
E. 12.14%
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