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% $785 = $40
Correct Answer:
Verified
Correct Answer:
Verified
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