Ajax Corporation Issued 10,000 Units of $1,000 Face Value Bonds

question 288

Multiple Choice

Ajax Corporation issued 10,000 units of $1,000 face value bonds that mature in 20 years and have a 4% coupon rate that is paid semi-annually. If the bonds were sold at 103.5% of their face value, calculate the yield to maturity on the date of the issue.

• A) 3.50%
• B) 3.58%
• C) 3.64%
• D) 3.71%
• E) 3.75%

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