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A 75% Coupon Bond with 16 Years Left to Maturity Is

Question 48

Multiple Choice

A 7.5% coupon bond with 16 years left to maturity is offered for sale at $834.92. What yield to maturity is the bond offering? (Assume interest payments are paid semi-annually and par value is $1,000.)


A) 4.77%
B) 7.5%
C) 9.54%
D) 10.34%

Correct Answer:

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