Dyl Inc'S Bonds Currently Sell for $1,040 and Have a Par

question 15

Multiple Choice

Dyl Inc.'s bonds currently sell for $1,040 and have a par value of $1,000.They pay a $65 annual coupon and have a 15-year maturity,but they can be called in 5 years at $1,100.What is their yield to maturity (YTM) ?

• A)5.78%
• B)6.09%
• C)6.39%
• D)6.71%
• E)7.05%

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