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If a $1,000 Par Value Bond Has a Coupon Rate

Question 76

Multiple Choice

If a $1,000 par value bond has a coupon rate of 7% with interest paid semi-annually, a maturity of 18 years, and a current price of $1,235, what is the annual yield-to-maturity of this bond?


A) 2.5%
B) 4.3%
C) 5.0%
D) 6.4%

Correct Answer:

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