A $5,000 Face Value Municipal Bond Matures in 14 Years

question 17

Multiple Choice

A $5,000 face value municipal bond matures in 14 years and is priced at $4,862.The coupon rate is 4.5 percent with interest paid semiannually.What is the yield to maturity on the bond?

• A)4.77 percent
• B)5.14 percent
• C)5.40 percent
• D)5.61 percent
• E)5.97 percent

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