Use the Information for the Question(s)below

question 18

Multiple Choice

Use the information for the question(s) below.
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years.The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
-Assuming that this bond trades for $1112,then the YTM for this bond is closest to:

• A)8.0%.
• B)3.4%.
• C)6.8%.
• D)9.2%.

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Definitions:

Atom

The basic unit of a chemical element, consisting of a nucleus of protons and neutrons, with electrons orbiting the nucleus.

Molecule

The smallest particle in a chemical element or compound that has the chemical properties of that element or compound, consisting of two or more atoms bonded together.

Constitutional Isomer

Molecules with the same molecular formula but different arrangements of atoms in space.

Empirical Formula

The simplest positive integer ratio of atoms present in a compound, not indicating the actual bonding of the atoms.