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Lambda CoHas Bonds Outstanding That Mature in 10 Years

Question 113

Multiple Choice

Lambda Co.has bonds outstanding that mature in 10 years.The bonds have $1,000 par value,pay interest annually at a rate of 9%,and have a current selling price of $1,125.The yield to maturity on the bonds is:


A) 7.20%.
B) 9%.
C) 10.12%.
D) 14.40%.

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