Assume You're Contemplating the Purchase of a $1,000,6% Annual Coupon

question 97

Multiple Choice

Assume you're contemplating the purchase of a $1,000,6% annual coupon income bond with 5 years remaining to maturity and that the bond currently is trading at $950.The approximate yield to maturity on this bond will be

• A)6.0%.
• B)7.2%.
• C)8.1%.
• D)11.3%.
• E)12.1%.

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