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A Bond Has Six Years to Maturity and Has a Coupon

Question 66

Multiple Choice

A bond has six years to maturity and has a coupon rate of 7.5 percent.Coupon payments are made annually and the bond has a face value of $1,000.The bond is currently selling in the market for $1,127.What is the yield-to-maturity on this bond?


A) 7.5 percent
B) 5 percent
C) 11.5 percent
D) 2.5 percent
E) None of the options is correct

Correct Answer:

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