Broke Benjamin Company has a bond outstanding that makes semiannual payments with a coupon rate of 5.7 percent. The bond sells for $961.87 and matures in 21 years. The par value is $1,000. What is the YTM of the bond?
Broke Benjamin Company has a bond outstanding that makes semiannual payments with a coupon rate of 5.7 percent. The bond sells for $961.87 and matures in 21 years. The par value is $1,000. What is the YTM of the bond?
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 11PROB
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Broke Benjamin Company has a bond outstanding that makes
semiannual payments with a coupon rate of 5.7 percent. The bond
sells for $961.87 and matures in 21 years. The par value is $1,000.
What is the YTM of the bond?
Multiple Choice
6.02%
3.01%
О
5.42%
О
4.52%
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