A 9 percent semiannual coupon bond matures in 8 years. The bond has a face value of $1,000 and a current yield (CY) of 8.64 percent. What is the bond’s yield to maturity (YTM)? a. 8.64% b. 7.77% c. 8.28% d. 3.89% e. 9.00%

A 9 percent semiannual coupon bond matures in 8 years. The bond has a face value of $1,000 and a current yield (CY) of 8.64 percent. What is the bond’s yield to maturity (YTM)? a. 8.64% b. 7.77% c. 8.28% d. 3.89% e. 9.00%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...

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Question

A 9 percent semiannual coupon bond matures in 8 years. The bond has a face value of $1,000 and a current yield (CY) of 8.64 percent. What is the bond’s yield to maturity (YTM)?

a.
8.64%

b.
7.77%

c.
8.28%

d.
3.89%

e.
9.00%

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