A $1,000 Par Value 5 Percent Treasury Bond Pays Interest

question 79

Multiple Choice

A $1,000 par value 5 percent Treasury bond pays interest semiannually and matures in 7.5 years.What is the yield to maturity if the bond is currently quoted at a price of 112.34?

• A)3.14 percent
• B)3.18 percent
• C)3.23 percent
• D)6.28 percent
• E)6.36 percent

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