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Chrysler Has a Bond Outstanding with Eight Years Remaining to Maturity

Question 99

Multiple Choice

Chrysler has a bond outstanding with eight years remaining to maturity, a coupon rate of 5%, and semiannual payments.If the market price of the Chrysler bond is $729.05, what is the yield to maturity?


A) 7%
B) 9%
C) 10%
D) 11%

Correct Answer:

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