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Keyser Materials Has 8 Percent Coupon Bonds on the Market

Question 103

Multiple Choice

Keyser Materials has 8 percent coupon bonds on the market with 19 years to maturity.The bonds make semiannual payments and currently sell for 102 percent of par.What is the current yield on Keyser Materials bonds? The YTM?
The effective annual yield?


A) 7.84 percent; 7.80 percent; 7.95 percent
B) 7.84 percent; 7.92 percent; 7.95 percent
C) 7.84 percent; 7.92 percent; 7.97 percent
D) 7.80 percent; 7.84 percent; 7.92 percent
E) 7.80 percent; 7.92 percent; 7.95 percent

Correct Answer:

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