Consider a 12%,15 year bond that pays interest semiannually,and its current price is $675.What is the promised yield to maturity?
A) 10.23%
B) 18.45%
C) 17.77%
D) 2.31%
E) 9.26%

Question

Quizplus · Accepted Answer

$$675 = 60 \left( \frac { 1 - \frac { 1 } { ( 1 + i ) ^ { 30 } } } { i } \right) + \frac { 1000 } { ( 1 + i ) ^ { 30 } }$$ i = .09227.Annualized i = .09227 × 2 = .1845

Consider a 12%,15 Year Bond That Pays Interest Semiannually,and Its