What Is the Yield to Maturity of a $1,000 Bond

question 18

Multiple Choice

What is the yield to maturity of a $1,000 bond with 14 years to maturity, a coupon rate of 8 percent? The bond is currently quoted at a price of 101.0625 and it pays interest semiannually.

• A) 5.05%
• B) 7.87%
• C) 8.71%
• D) 8.53%
• E) 4.60%

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