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Suppose a Five-Year Bond with a 7% Coupon Rate and Semiannual

Question 40

Multiple Choice

Suppose a five-year bond with a 7% coupon rate and semiannual compounding is trading for a price of $951.58.Expressed as an APR with semiannual compounding,this bond's yield to maturity (YTM) is closest to:


A) 7.0%.
B) 7.5%.
C) 7.8%.
D) 8.2%.

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