Onipa Hia Mmoa Holdings bonds have an annual coupon payment of 7.25%. The bonds have a par value of 1,000, the price of the bonds today is GHS1,125.00 and matures in 13 years. What is the yield to maturity on these bonds? A. 5.56% B. 5.85% C. 6.14% D. 6.45%

Onipa Hia Mmoa Holdings bonds have an annual coupon payment of 7.25%. The bonds have a par value of 1,000, the price of the bonds today is GHS1,125.00 and matures in 13 years. What is the yield to maturity on these bonds? A. 5.56% B. 5.85% C. 6.14% D. 6.45%

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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Concept explainers

Bond Valuation

Bond valuation are the notes issued by the corporation to raise long-term funds for the business. The corporations are required to pay the interest on such liabilities at a specified rate of interest (termed as coupon rate) at specified dates which may be on semi-annual or annual basis. These interest payments may be in the form of coupons.

Question

Onipa Hia Mmoa Holdings bonds have an annual coupon
payment of 7.25%. The bonds have a par value of
1,000, the price of the bonds today is GHS1,125.00 and
matures in 13 years. What is the yield to maturity on
these bonds?
A. 5.56%
B. 5.85%
C. 6.14%
D. 6.45%

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