A Bond Is Currently Priced at $800 on a Par

question 146

Multiple Choice

A bond is currently priced at $800 on a par value of $1,000.Its term to maturity is 10 years and its coupon rate is 10% (stated annually,paid semiannually) .If you buy the bond,and hold it to maturity,what would be the yield to maturity?

• A)10%
• B)12.50%
• C)13.81%
• D)8%

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