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Palmer Products Has Outstanding Bonds with an Annual 8 Percent

Question 90

Multiple Choice

Palmer Products has outstanding bonds with an annual 8 percent coupon. The bonds have a par value of $1,000 and a price of $865. The bonds will mature in 11 years. What is the yield to maturity on the bonds?


A) 10.09%
B) 11.13%
C) 9.25%
D) 8.00%
E) 9.89%

Correct Answer:

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