You Own a Bond That Pays $64 in Interest Annually

question 16

Multiple Choice

You own a bond that pays $64 in interest annually. The face value is $1,000 and the current market price is $1,021.61. The bond matures in 11 years. What is the yield to maturity?

• A) 6.12 percent
• B) 6.22 percent
• C) 6.46 percent
• D) 6.71 percent
• E) 5.80 percent

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