You just paid $1,200 for a bond with the face value of $1,000. This bond pays a 6% coupon semi- annually, it has a term to maturity of 25 years. Assume that the last coupon has just been paid. What is the yield to maturity of the bond?a.5.52%b.2.32% c.4.64%d.3.76%e.6.39%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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You just paid $1,200 for a bond with the face value of $1,000. This bond pays a 6% coupon semi-
annually, it has a term to maturity of 25 years. Assume that the last coupon has just been paid. What is the
yield to maturity of the bond?a.5.52%b.2.32% c.4.64%d.3.76%e.6.39%
Transcribed Image Text:You just paid $1,200 for a bond with the face value of $1,000. This bond pays a 6% coupon semi- annually, it has a term to maturity of 25 years. Assume that the last coupon has just been paid. What is the yield to maturity of the bond?a.5.52%b.2.32% c.4.64%d.3.76%e.6.39%
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