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Ajax Corporation Issued 10,000 Units of $1,000 Face Value Bonds

Question 31

Multiple Choice

Ajax Corporation issued 10,000 units of $1,000 face value bonds that mature in 20 years and have a 4% coupon rate that is paid semi-annually. If the bonds were sold at 96.5% of their face value, calculate the yield to maturity at the end of year 8.


A) 4.26%
B) 4.30%
C) 4.38%
D) 4.44%
E) 4.50%

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