A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of

Name: A $10,000 8 percent coupon bond that sells for $10,000 has a yield to maturity of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Yield to maturity is the total return anticipated on a bond if the bond is held until it matures. In this case, the bond sells at its par value of $10,000, which means the bond's coupon rate (8%) is equal to its yield to maturity. Therefore, the answer is A) 8 percent.

A $10,000 8 Percent Coupon Bond That Sells for $10,000