Blue's Chips Inc.has a $1,000 face value bond that is currently selling for $1,300.It has an annual coupon rate of 7%,paid semiannually,and has nine years remaining until maturity.What is the annual yield to maturity on the bond? (Round to the nearest whole percentage. )
A) 3.15%
B) 1.57%
C) 3.12%
D) 6.24%
Correct Answer:
Verified
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