Dave Harris Has Just Purchased a Bond with a Face

question 80

Multiple Choice

Dave Harris has just purchased a bond with a face value of $1,000 that pays 4 percent.The purchase price of the bond was $950,and the bond will mature in 5 years.What is the yield to maturity for this bond (round to the nearest tenth of a percent) ?

• A)4.0 percent
• B)6.0 percent
• C)5.1 percent
• D)8.2 percent
• E)9.0 percent