Consider a 10%,15 year bond that pays interest annually quarterly,and its current price is $1060.What is the promised yield to maturity?
A) 10.23%
B) 18.45%
C) 2.31%
D) 17.77%
E) 9.26%

Question

Quizplus · Accepted Answer

$$1060 = 25 \left( \frac { 1 - \frac { 1 } { ( 1 + i ) ^ { 60 } } } { i } \right) + \frac { 1000 } { ( 1 + i ) ^ { 60 } }$$ i = .02314.Annualized i = .02134 × 4 = .0926

Consider a 10%,15 Year Bond That Pays Interest Annually Quarterly,and