A Bond Has Five Years to Maturity, a $1000 Face

question 98

Multiple Choice

A bond has five years to maturity, a $1000 face value, and a 5.5% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $846.11?

• A) 11.41%
• B) 13.31%
• C) 7.61%
• D) 9.51%

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Definitions:

Mexican Pesos

The official currency of Mexico, symbolized by the sign "$" or "MXN" when distinguishing it from other dollar-denominated currencies.