Answered: A bond has a $1,000 par value, 6 years…

A bond has a $1,000 par value, 6 years to maturity, a 13 percent annual coupon, and sells for $1,093. What is the bond’s yield to maturity (YTM)? a. 10.93% b. 10.81% c. 11.89% d. 13.00% e. 14.58%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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Question

A bond has a $1,000 par value, 6 years to maturity, a 13 percent annual coupon, and sells for $1,093. What is the bond’s yield to maturity (YTM)?

a.
10.93%

b.
10.81%

c.
11.89%

d.
13.00%

e.
14.58%

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