A bond with a par value of $1,000 has annual interest payment of $85. The bond currently sells for $850 and has 8 years to maturity. Which of the following is true?
A) The current yield on the bond must be 8.5%.
B) The investor's required rate of return must be 8.5%.
C) The coupon rate must be 8.5%.
D) The yield-to-maturity must be 8.5%.
Correct Answer:
Verified
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