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A Bond Has an Annual Coupon Rate of 7 Percent

Question 28

Multiple Choice

A bond has an annual coupon rate of 7 percent, a $1,000 face value, and ten years remaining until maturity. The bond currently sells for $1,138. The yield to maturity for this bond is __________ percent. (Note: This question requires a financial calculator.)


A) 7.0
B) 5.2
C) 13.8
D) 10.0

Correct Answer:

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