Given the bond described above, if interest were paid semi-annually (rather than annually), and the bond continued to be priced at $850, the resulting effective annual yield to maturity would be
A)less than 12%.
B)more than 12%.
C)12%.
D)Cannot be determined.

Question

Given the bond described above, if interest were paid semi-annually (rather than annually), and the bond continued to be priced at $850, the resulting effective annual yield to maturity would be
A)less than 12%. 
B)more than 12%. 
C)12%. 
D)Cannot be determined.

Quizplus · Accepted Answer

The Answer of  Given the bond described above, if interest were paid semi-annually (rather than annually), and the bond continued to be priced at $850, the resulting effective annual yield to maturity would be
A)less than 12%. 
B)more than 12%. 
C)12%. 
D)Cannot be determined.

Given the Bond Described Above, If Interest Were Paid Semi-Annually