The market price of a bond is $1,119.90; it has 4 years to maturity, a $1,000 par value, and pays a coupon of $100 every year. What is the yield to maturity? (assume the coupons are paid annually). A. 3.27% B. 6.50% C. 6.54% D. 10.00 % E. None of the above
The market price of a bond is $1,119.90; it has 4 years to maturity, a $1,000 par value, and pays a coupon of $100 every year. What is the yield to maturity? (assume the coupons are paid annually). A. 3.27% B. 6.50% C. 6.54% D. 10.00 % E. None of the above
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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![QUESTION 3
The market price of a bond is $1,119.90; it has 4 years to maturity, a $1,000 par value, and pays a coupon of $100 every year.
What is the yield to maturity? (assume the coupons are paid annually).
A. 3.27%
B. 6.50%
C. 6.54%
D. 10.00%
E. None of the above](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff51ee215-29b3-4450-a2e3-203941a10cd5%2F395eb85b-cb07-47bf-8275-36545226911d%2F8w3ann_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 3
The market price of a bond is $1,119.90; it has 4 years to maturity, a $1,000 par value, and pays a coupon of $100 every year.
What is the yield to maturity? (assume the coupons are paid annually).
A. 3.27%
B. 6.50%
C. 6.54%
D. 10.00%
E. None of the above
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