Sentry Corp. bonds have in annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the yield to maturity on these bonds? a. 5.56% b. 6.45% c. 5.85% d. 6.14% e. 6.77%

Sentry Corp. bonds have in annual coupon payment of 7.25%. The bonds have a par value of $1,000, a current price of $1,125, and they will mature in 13 years. What is the yield to maturity on these bonds? a. 5.56% b. 6.45% c. 5.85% d. 6.14% e. 6.77%

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

Sentry Corp. bonds have in annual coupon payment of
7.25%. The bonds have a par value of $1,000, a current
price of $1,125, and they will mature in 13 years. What is the
yield to maturity on these bonds?
a. 5.56%
b. 6.45%
c. 5.85%
d. 6.14%
e. 6.77%

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