What is the yield to maturity for a bond paying $100 annually that has 6 years until maturity and sells for $1,000?
A) 6.0%
B) 8.5%
C) 10.0%
D) 12.5%

Name: What is the yield to maturity for a bond paying $100 annually that has 6 years until maturity and sells for $1,000? A) 6.0% B) 8.5% C) 10.0% D) 12.5%
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Question

Quizplus · Accepted Answer

Since the bond is selling at par, the yield to maturity must equal the coupon rate which is:Coupon rate = $100 / $1,000 = 0.10, or 10%

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