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A 12-Year Bond That Has a 12 Percent Coupon Rate

Question 61

Multiple Choice

A 12-year bond that has a 12 percent coupon rate is currently selling for $1,000, which equals the bond's face value.If interest is paid semiannually, the bond's yield to maturity is


A) equal to 12 percent.
B) greater than 12 percent.
C) less than 12 percent.
D) More information is needed to answer this question.
E) None of the above is correct.

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