Ajax Corporation issued 10,000 units of $1,000 face value bonds that mature in 20 years and have a 4% coupon rate that is paid semi-annually. If the bonds were sold at 103.5% of their face value, calculate the yield to maturity at the end of year 8.
A) 3.50%
B) 3.58%
C) 3.64%
D) 3.71%
E) 3.75%
Correct Answer:
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