An EAL Bond Has a Coupon Rate of 16 Percent

question 79

Multiple Choice

An EAL bond has a coupon rate of 16 percent, pays interest semiannually, and matures in 15 years. If the bond is selling for $968.82, what is its yield to maturity?

• A) 8.3%
• B) 16.1%
• C) 16.6%
• D) 14.3%

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