A bond with an annual coupon rate of 6.5%, maturing in 10 years at a value of $1,000 and a current market price of $899.35, will have a yield to maturity (using the approximation formula) of
A) between 5% and 6%.
B) between 6% and 7.5%.
C) between 7.5% and 8.5%.
D) between 8.5% and 10%.
Correct Answer:
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