A 25-year, $1,000 Enron bond is trading at a $620 discount. The bond carries a coupon rate of 9% and it was issued 10 years ago. Determine the yield to maturity.
A) 7.817 % compounded semiannually
B) 8.522 % compounded semiannually
C) 12.460 % compounded semiannually
D) 13.699 % compounded semiannually
E) 24.921 % compounded semiannually
Correct Answer:
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