What is the yield to maturity on a $1,000 par value bond 9 ⅛ percent Intercontinental Hotels Group bond if the investor buys the bonds at the following market prices? Assume the coupon is paid annually and the bond matures in 6 years. a.$1,125.00 b.$1,000 c.$962.00

Intermediate Financial Management (MindTap Course List)
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Author:Eugene F. Brigham, Phillip R. Daves
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Chapter4: Bond Valuation
Section: Chapter Questions
Problem 12P: Bond Yields and Rates of Return A 10-year, 12% semiannual coupon bond with a par value of 1,000 may...
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4. What is the yield to maturity on a $1,000 par value bond 9 ⅛ percent Intercontinental Hotels Group bond if the investor buys the bonds at the following market prices? Assume the coupon is paid annually and the bond matures in 6 years.

a.$1,125.00

b.$1,000

c.$962.00

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