The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semi-annually. Assuming that this bond trades for $903, then the YTM for this bond is closest to: OA. 10.7% OB. 6.8% OC. 9.2% O D. 9.9% OE. 8.0%
The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semi-annually. Assuming that this bond trades for $903, then the YTM for this bond is closest to: OA. 10.7% OB. 6.8% OC. 9.2% O D. 9.9% OE. 8.0%
Chapter6: Bonds (debt) - Characteristics And Valuation
Section: Chapter Questions
Problem 11PROB
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