A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal to %. (Round your response to the nearest whole number) What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $990, pays an annual coupon of $70, and whose price today is $1009.50? OA. 6% OB. 5% OC. 7% OD. 4% OE. 8% If the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be its face value.
A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal to %. (Round your response to the nearest whole number) What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $990, pays an annual coupon of $70, and whose price today is $1009.50? OA. 6% OB. 5% OC. 7% OD. 4% OE. 8% If the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be its face value.
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
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Transcribed Image Text:A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal to %. (Round your response to
the nearest whole number)
What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of
$990, pays an annual coupon of $70, and whose price today is $1009.50?
OA. 6%
OB. 5%
OC. 7%
OD. 4%
OE. 8%
If the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be
its face value.
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