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Bavarian Sausage Just Issued a 10-Year 12% Coupon Bond

Question 14

Multiple Choice

Bavarian Sausage just issued a 10-year 12% coupon bond.The face value of the bond is $1,000 and the bond makes SEMIANNUAL coupon payments.If the bond is trading at $1,267.25,what is the bond's yield to maturity?


A) 12.00%
B) 8.06%
C) 14.38%
D) 10.97%

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