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Otto Enterprises Has a Bond Issue Outstanding with a Coupon

Question 60

Multiple Choice

Otto Enterprises has a bond issue outstanding with a coupon of 8 percent that matures in 15 years.The bond is currently priced at $923.60 and has a par value of $1,000.Interest is paid semiannually.What is the yield to maturity?


A) 8.67 percent
B) 9.93 percent
C) 9.16 percent
D) 8.93 percent
E) 8.45 percent

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