A bond makes annual coupon payments of R75. The bond matures in four years, has a par value of R1,000, and sells for R975.30. What is the bond’s yield to maturity (YTM) A. 9,25% B. 8,25% C. 8,52% D. 7,52%

A bond makes annual coupon payments of R75. The bond matures in four years, has a par value of R1,000, and sells for R975.30. What is the bond’s yield to maturity (YTM) A. 9,25% B. 8,25% C. 8,52% D. 7,52%

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 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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A bond makes annual coupon payments of R75. The bond matures in four years, has a par value of R1,000, and sells for R975.30. What is the bond’s yield to maturity (YTM)

A. 9,25%

B. 8,25%

C. 8,52%

D. 7,52%

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