Answered: A bond has nine years to maturity, a…

A bond has nine years to maturity, a $2,000 face value, and a 5.5% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,547?

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 4MC

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Question

A bond has

nine

years to maturity, a

$2,000

face value, and a

5.5%

coupon rate with annual coupons. What is its yield to maturity if it is currently trading at

$1,547?

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