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A $1,000 Bond with a Coupon Rate of 7 Percent

Question 85

Multiple Choice

A $1,000 bond with a coupon rate of 7 percent is currently selling at $1,208. If the bond has 6 years to maturity, what is the yield to maturity? The bond pays interest semiannually.


A) 2.88%
B) 6.14%
C) 5.34%
D) 3.17%
E) 3.44%

Correct Answer:

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