What Is the Yield to Maturity of a Nine-Year Bond

question 44

Multiple Choice

What is the yield to maturity of a nine-year bond that pays a coupon rate of 20% per year,has a $1,000 par value,and is currently priced at $1,407? Round your answer to the nearest whole percent and assume annual coupon payments.

• A)5%
• B)14%
• C)12%
• D)11%

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