You Are Considering the Purchase of Hytec Bonds That Were

question 83

Multiple Choice

You are considering the purchase of Hytec bonds that were issued 14 years ago. When the bonds were originally sold, they had a 30-year maturity and a 14.375% coupon interest rate that is payable semiannually. The bond is currently selling for $1,508.72. What is the yield to maturity on the bonds?

• A) 8.50%
• B) 14.38%
• C) 11.11%
• D) 7.67%

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Definitions:

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