You own a bond with a par value of $1,000 and a coupon rate of 8.25% (annual coupon). It is currently worth $950. What is its yield to maturity? The bond has 6 years to maturity. O 9.38% O 8.67% O 10.25% O 9.49% O 10.15%
You own a bond with a par value of $1,000 and a coupon rate of 8.25% (annual coupon). It is currently worth $950. What is its yield to maturity? The bond has 6 years to maturity. O 9.38% O 8.67% O 10.25% O 9.49% O 10.15%
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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![You own a bond with a par value of $1,000 and a coupon rate of 8.25% (annual coupon). It is currently worth $950.
What is its yield to maturity? The bond has 6 years to maturity.
O 9.38%
O 8.67%
O 10.25%
O 9.49%
O 10.15%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcfd788e1-0b6f-4701-8dc5-cb11e28df5f3%2F3ce05e65-e38c-4029-8bbc-47e4dc690d4b%2F1wj4vnv.png&w=3840&q=75)
Transcribed Image Text:You own a bond with a par value of $1,000 and a coupon rate of 8.25% (annual coupon). It is currently worth $950.
What is its yield to maturity? The bond has 6 years to maturity.
O 9.38%
O 8.67%
O 10.25%
O 9.49%
O 10.15%
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