The bonds issued by Jordache Jewelers of Toronto bear a 7.5% coupon, payable semiannually. The bonds mature in 13 years and have a $1,000 face value. Currently, the bonds sell at par. What is the
Yield to maturity?

Question

Quizplus · Accepted Answer

Since the bond is selling at par, the yield to maturity is equal to the coupon rate. Thus, the yield to maturity is 7.5%. Therefore, the answer is (D) 7.50%.

The Bonds Issued by Jordache Jewelers of Toronto Bear a 7.5