A semi-annual coupon matures in one year.It has a face value of $1,000,a coupon rate of 4%,and the next semi-annual coupon is due in six months.The bond trades for $971.50.What is the yield to maturity of the bond?
A) 3.50%
B) 3.56%
C) 4.00%
D) 7.00%
E) 7.12%
Correct Answer:
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