Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65, paid semiannually. The current price is $960. What is the current yield? Group of answer choices a)7.16% b)7.17% c)6.77% d)6.5%

Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65, paid semiannually. The current price is $960. What is the current yield? Group of answer choices a)7.16% b)7.17% c)6.77% d)6.5%

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 7P: Bond Valuation with Semiannual Payments Renfro Rentals has issued bonds that have a 10% coupon rate,...

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Question

Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65, paid semiannually. The current price is $960. What is the current yield?

Group of answer choices

a)7.16%

b)7.17%

c)6.77%

d)6.5%

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