Scott Turner has a bond with 10 years to maturity, a face value of $1,000, a 7% interest rate, and a market price of $800. What is the yield to maturity on this bond? a. 8.00% b. 11.00% C. 7.00% d. 10.00% e. 11.11%

Scott Turner has a bond with 10 years to maturity, a face value of $1,000, a 7% interest rate, and a market price of $800. What is the yield to maturity on this bond? a. 8.00% b. 11.00% C. 7.00% d. 10.00% e. 11.11%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

Ytm of bond

Scott Turner has a bond with 10 years to
maturity, a face value of $1,000, a 7% interest
rate, and a market price of $800. What is the
yield to maturity on this bond?
a. 8.00%
b. 11.00%
c. 7.00%
d. 10.00%
e. 11.11%

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