Alacare has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 14% with interest paid semi-annually, and a par value of $1,000. The current market price of the bonds is $1,251.22. What is the bond's yield to maturity? Remember to multiply the answer by two to put it in the stated annual rate. O 6.73% 4.73% ○ 9.45% O 10.66%
Alacare has a bond issue outstanding with eight years remaining to maturity, a coupon rate of 14% with interest paid semi-annually, and a par value of $1,000. The current market price of the bonds is $1,251.22. What is the bond's yield to maturity? Remember to multiply the answer by two to put it in the stated annual rate. O 6.73% 4.73% ○ 9.45% O 10.66%
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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Transcribed Image Text:Alacare has a bond issue outstanding with eight years remaining to maturity, a coupon rate of
14% with interest paid semi-annually, and a par value of $1,000. The current market price of
the bonds is $1,251.22. What is the bond's yield to maturity? Remember to multiply the answer
by two to put it in the stated annual rate.
O 6.73%
4.73%
○ 9.45%
O 10.66%
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