A Coupon Bond That Pays Interest of $90 Annually Has

question 85

Multiple Choice

A coupon bond that pays interest of $90 annually has a par value of $1,000, matures in nine years, and is selling today at a $66 discount from par value.The yield to maturity on this bond is

• A)9.00%.
• B)10.15%.
• C)11.25%.
• D)12.32%.

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