None You just paid $1,200 for a bond with the face value of $1,000. This bond pays a 6% coupon semi-annually, it has a term to maturity of 25 years. Assume that the last coupon has just been paid. What is theyield to maturity of the bond?a.5.52%b.2.32% c.4.64%d.3.76%e.6.39%

We can determine the bond's yield to maturity (YTM) using the following information: Face value (FV)…

Answered: You just paid $1,200 for a bond with…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 11P

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You just paid $1,200 for a bond with the face value of $1,000. This bond pays a 6% coupon semi- annually, it has a term to maturity of 25 years. Assume that the last coupon has just been paid. What is the yield to maturity of the bond?a.5.52%b.2.32% c.4.64%d.3.76%e.6.39%