There is a bond that has a quoted price of 105.039 and a par value of $2,000. The coupon rate is 6.87 percent and the bond matures in 25 years. If the bond makes semiannual coupon payments, what is the YTM of the bond? 4.85% 3.14% 3.23% 5.81% 6.46%

There is a bond that has a quoted price of 105.039 and a par value of $2,000. The coupon rate is 6.87 percent and the bond matures in 25 years. If the bond makes semiannual coupon payments, what is the YTM of the bond? 4.85% 3.14% 3.23% 5.81% 6.46%

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 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...

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Question

There is a bond that has a quoted price of 105.039 and a par value of $2,000. The
coupon rate is 6.87 percent and the bond matures in 25 years. If the bond makes
semiannual coupon payments, what is the YTM of the bond?
4.85 % 3.14% 3.23% 5.81 % 6.46%

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