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A Bond with a 12% Coupon, 10 Years to Maturity

Question 70

Multiple Choice

A bond with a 12% coupon, 10 years to maturity, and selling at $88.00 has a yield to maturity of


A) over 14%.
B) between 13% and 14%.
C) between 12% and 13%.
D) between 10% and 12%.
E) less than 12%.

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