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A 70% Coupon Bond Pays Interest Semiannually and Has 10 Years

Question 54

Multiple Choice

A 7.0% coupon bond pays interest semiannually and has 10 years to maturity. The bond has a face value of $1,000 and a market value of $878.50. What is the yield to maturity?


A) 8.16%
B) 8.86%
C) 8.89%
D) 10.43%
E) 11.21%

Correct Answer:

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