A corporate bond has a face value of $1,000, and pays a $14 coupon semiannually (that is, the bond has a 2.8 percent coupon). The bond matures in 6 years and sells at a price of $545. What is the bond's nominal yield to maturity? O 13.87% O 15.37% O 14.37% O 15.87% O 14.87%

A corporate bond has a face value of $1,000, and pays a $14 coupon semiannually (that is, the bond has a 2.8 percent coupon). The bond matures in 6 years and sells at a price of $545. What is the bond's nominal yield to maturity? O 13.87% O 15.37% O 14.37% O 15.87% O 14.87%

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 corporate bond has a face value of $1,000, and pays a $14 coupon semiannually
(that is, the bond has a 2.8 percent coupon). The bond matures in 6
years and sells at a price of $545. What is the bond's nominal yield to maturity?
O 13.87%
O 15.37%
O 14.37%
O 15.87%
O 14.87%

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