The bonds issued by North & South bear a coupon rate of 7.5 percent,payable semiannually.The bonds mature in 6.5 years,sell at par,and have a $1,000 face value.What is the yield to maturity?

Name: The bonds issued by North & South bear a coupon rate of 7.5 percent,payable semiannually.The bonds mature in 6.5 years,sell at par,and have a $1,000 face value.What is the yield to maturity?
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Question

Quizplus · Accepted Answer

No math is required;since the bonds sell at par,the yield to maturity will equal the coupon rate.

The Bonds Issued by North & South Bear a Coupon