What Is the Yield to Maturity on a $1,000 Par

question 7

Multiple Choice

What is the yield to maturity on a $1,000 par value 93/4% bond purchased for $1,125? Assume the coupon is paid annually and the maturity is 12 years.

• A)8.16%
• B)-8.16%
• C)8.08%
• D)7.90%

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