Assume you purchase a band from Texas Republic and it has 8 yours remaining uncil caturity and that you will not sell i prior to maturity. Further, when you purchased the hend, it was priced at $825.80 The hond has an annual coupon rate of 4%. What is the bond's yield to maturity? A. 6

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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price since the bond is trading at a premium
Assume you purchase a bond from Texas Republic and it has 8 years remaining until maturity and that you will not sell it
prior to maturity. Further, when you purchased the hond, it was priced at $875.80 The hond has an annual coupon rate of
4%. What is the bone's yield to maturity?
A. 6%
B. 2%
C. 4%
D. 9%
E. 8%
Cumently investors demand
ochod 30%6 Based on this information what
Transcribed Image Text:price since the bond is trading at a premium Assume you purchase a bond from Texas Republic and it has 8 years remaining until maturity and that you will not sell it prior to maturity. Further, when you purchased the hond, it was priced at $875.80 The hond has an annual coupon rate of 4%. What is the bone's yield to maturity? A. 6% B. 2% C. 4% D. 9% E. 8% Cumently investors demand ochod 30%6 Based on this information what
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