A coupon bond that pays interest semi-annually is selling at par value of $1,000,matures in 7 years,and has a coupon rate of 8.6%.The yield to maturity on this bond is:

Name: A coupon bond that pays interest semi-annually is selling at par value of $1,000,matures in 7 years,and has a coupon rate of 8.6%.The yield to maturity on this bond is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Since the bond is selling at par value, the yield to maturity will be equal to the coupon rate of 8.6%. Therefore, answer choice B is the correct answer.

A Coupon Bond That Pays Interest Semi-Annually Is Selling at Par