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A 78% Coupon Bond That Pays Interest Semiannually Is Selling at at $872

Question 75

Multiple Choice

A 7.8% coupon bond that pays interest semiannually is selling at $872, has a face value of $1,000, and matures in 12 years. What is the bond's yield to maturity?


A) 3.90%
B) 4.81%
C) 7.80%
D) 9.62%

Correct Answer:

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