A bond with a face value of $1000 and 20 years remaining until maturity, pays a coupon rate of 12% compounded semiannually. What yield (compounded semiannually) to maturity is earned by an investor who purchases this bond for $850?
A) 14.29%
B) 11.80%
C) 14.94%
D) 16.32%
E) 13.65%
Correct Answer:
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