New Homes has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $1,022. Interest is paid semiannually. What is the yield to maturity?
A) 6.36 percent
B) 6.42 percent
C) 5.61 percent
D) 5.74 percent
E) 5.18 percent
Correct Answer:
Verified
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