Ajax Corp Has a Bond with a Coupon Rate of 12

question 128

Multiple Choice

Ajax Corp. has a bond with a coupon rate of 12%, maturing in 15 years at $1,000 per bond. The current market price is $960. What is the current yield?

• A) 12.7%
• B) 12.6%
• C) 12.0%
• D) 11.5%

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