A Four-Year 6 Percent Semi-Annual-Pay Bond with a Maturity Value

question 28

Multiple Choice

A four-year 6 percent semi-annual-pay bond with a maturity value of $1,000 is trading at the YTM of 7 percent.What is this bond's current yield?

• A) 5.80%
• B) 6.21%
• C) 6.76%
• D) 7.25%

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