What is the yield to maturity of a eight-year, $5,000 bond with a 5.1% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,425. O A. 8.38% OB. 3.49% O C. 9.78% OD. 6.99%

What is the yield to maturity of a eight-year, $5,000 bond with a 5.1% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,425. O A. 8.38% OB. 3.49% O C. 9.78% OD. 6.99%

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 4MC

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Question

What is the yield to maturity of a eight-year, $5,000 bond with a 5.1% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,425.53?
A. 8.38%
B. 3.49%
C. 9.78%
D. 6.99%

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