Broke Benjamin Company has a bond outstanding that makes semiannual payments with a coupon rate of 5.7 percent. The bond sells for $961.87 and matures in 21 years. The par value is $1,000. What is the YTM of the bond?

Broke Benjamin Company has a bond outstanding that makes semiannual payments with a coupon rate of 5.7 percent. The bond sells for $961.87 and matures in 21 years. The par value is $1,000. What is the YTM of the bond?

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

18
Broke Benjamin Company has a bond outstanding that makes
semiannual payments with a coupon rate of 5.7 percent. The bond
sells for $961.87 and matures in 21 years. The par value is $1,000.
What is the YTM of the bond?
Multiple Choice
6.02%
3.01%
О
5.42%
О
4.52%

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