What is the yield to maturity for a bond paying $100 annually that has six years until maturity and sells for $1,000?
A)6.0%
B)8.5%
C)10.0%
D)12.5% Using the BAII Plus calculator:

Question

Quizplus · Accepted Answer

The yield to maturity (YTM) is the interest rate that equates the present value of the bond's future cash flows to its current price. For a bond paying $100 annually, with a face value of $1,000, and selling for $1,000, the YTM is 10.0%.

What Is the Yield to Maturity for a Bond Paying