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A Coupon Bond Which Pays Interest of 4% Annually,has a Par

Question 27

Multiple Choice

A coupon bond which pays interest of 4% annually,has a par value of $1,000,matures in 5 years,and is selling today at $785.The actual yield to maturity on this bond is _________.


A) 7.2%
B) 8.8%
C) 9.1%
D) 9.6%

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