A bond has nine years to maturity, a $2,000 face value, and a 5.7% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,566? OA. 13.13% OB. 11.25% OC. 9.38% OD. 7.5%

A bond has nine years to maturity, a $2,000 face value, and a 5.7% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,566? OA. 13.13% OB. 11.25% OC. 9.38% OD. 7.5%

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 4MC

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Question

A bond has nine years to maturity, a $2,000 face value, and a 5.7% coupon rate with annual coupons. What is its yield to maturity if it is currently trading at $1,566?
OA. 13.13%
OB. 11.25%
OC. 9.38%
OD. 7.5%

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