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

question 18

Multiple Choice

What is the yield to maturity on a $1,000 par value 81/4% bond purchased for $850? Assume the coupon is paid annually and the maturity is 13 years.

• A)10.41%
• B)10.51%
• C)10.32%
• D)10.63%

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