A Corporate Bond with a Face Value of $1,000 Matures

question 82

Multiple Choice

A corporate bond with a face value of $1,000 matures in 4 years and has a coupon rate of 6.25 percent.The current price of the bond is $932 and interest is paid semiannually.What is the yield to maturity?

• A)9.05 percent
• B)6.67 percent
• C)8.58 percent
• D)8.28 percent
• E)7.92 percent

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