Assuming That This Bond Trades for $1112,then the YTM for This

question 110

Multiple Choice

Assuming that this bond trades for $1112,then the YTM for this bond is closest to:

• A)8.0%
• B)3.4%
• C)6.8%
• D)9.2%
• E)11.2%

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Definitions:

Ordinary Annuity

Definition: An annuity for which the payment or receipt of funds happens at the end of each period.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, resulting in 'interest on interest.'

Compounded Monthly

Interest on a deposit or loan is calculated each month and added to the principal, increasing the amount on which future interest is computed.

Mortgage Loan

A loan used to purchase a real estate property, secured by the property itself.