A bond, paying semi-annual coupons of 2% per annum, matures in 18 months time, and has a dirty price of $93.68. What is the bond's yield to maturity, with semi-annual compounding? 7.24% 6.49% 8.58% 6.60%

A bond, paying semi-annual coupons of 2% per annum, matures in 18 months time, and has a dirty price of $93.68. What is the bond's yield to maturity, with semi-annual compounding? 7.24% 6.49% 8.58% 6.60%

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, paying semi-annual coupons of 2% per annum, matures in 18 months time, and has a dirty price of $93.68. What is the bond's yield to maturity, with semi-annual compounding?

		7.24%
		6.49%
		8.58%
		6.60%

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