A company issued $1000 par value, 17-year bonds 2 years ago at a coupon rate of 6.8 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM? Multiple Choice O O O 711% 6.89% 702% 7.00% 3.51%

A company issued $1000 par value, 17-year bonds 2 years ago at a coupon rate of 6.8 percent. The bonds make semiannual payments. If these bonds currently sell for 98 percent of par value, what is the YTM? Multiple Choice O O O 711% 6.89% 702% 7.00% 3.51%

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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Question

A company issued $1000 par value, 17-year bonds 2 years ago at a coupon rate of 6.8 percent. The bonds make semiannual payments. If these bonds
currently sell for 98 percent of par value, what is the YTM?
Multiple Choice
O
O
7.11%
6.89%
7.02%
O 700%
3.51%

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