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    Exam 6: Fixed Income Securities: Bonds and Preferred Stock
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    What Is the Yield to Maturity on a $1,000 Par
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What Is the Yield to Maturity on a $1,000 Par

Question 18

Question 18

Multiple Choice

What is the yield to maturity on a $1,000 par value 81/4% bond purchased for $850? Assume the coupon is paid annually and the maturity is 13 years.


A) 10.41%
B) 10.51%
C) 10.32%
D) 10.63%

Correct Answer:

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