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A Coupon Bond Pays Annual Interest, Has a Par Value

Question 12

Multiple Choice

A coupon bond pays annual interest, has a par value of $1,000, matures in 12 years, has a coupon rate of 8.7%, and has a yield to maturity of 7.9%.The current yield on this bond is


A) 8.39%.
B) 8.43%.
C) 8.83%.
D) 8.66%.
E) None of the options

Correct Answer:

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