A bond with a coupon rate of 6.5%, maturing in 10 years at a value of $1,000 and a current market price of $950, will have a yield to maturity (using the approximation formula) of
A) between 6% and 6.5%.
B) between 6.5% and 7%.
C) between 7% and 7.5%.
D) between 7.5% and 8%.
Correct Answer:
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