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%

Given in question Par value =$1000 Coupon rate =8.25% Current price =$950 Maturity…

Answered: You own a bond with a par value of…

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%