Yield to maturity: Shawna Carter wants to invest her recent bonus in a four-year bond that pays a coupon of 11 percent semiannually. The bonds are selling at $962.13 today. If she buys this bond and holds it to maturity, what would be her yield?

A) 11.8%
B) 12.5%
C) 12.2%

Question

Yield to maturity: Shawna Carter wants to invest her recent bonus in a four-year bond that pays a coupon of 11 percent semiannually. The bonds are selling at $962.13 today. If she buys this bond and holds it to maturity, what would be her yield?

A) 11.8%
B) 12.5%
C) 12.2%

Quizplus · Accepted Answer

The Answer of Yield to maturity: Shawna Carter wants to invest her recent bonus in a four-year bond that pays a coupon of 11 percent semiannually. The bonds are selling at $962.13 today. If she buys this bond and holds it to maturity, what would be her yield?

A) 11.8%
B) 12.5%
C) 12.2%

Yield to Maturity: Shawna Carter Wants to Invest Her Recent