What Is the Yield to Maturity of a Corporate Bond

question 31

Multiple Choice

What is the yield to maturity of a corporate bond with 13 years to maturity,a coupon rate of 8% per year,a $1,000 par value,and a current market price of $1,250? Assume semiannual coupon payments.

• A) 4.2%
• B) 4.7%
• C) 6.0%
• D) 5.3%

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