Multiple Choice
WPI has a bond issue outstanding that has a coupon rate of 10% and a current yield of 11%. The yield to maturity on this bond is 12%. What is the market price, to the nearest dollar, of the WPI bond if it pays interest semiannually and has 10 years to mature?
A) $941
B) $1,021
C) $1,000
D) $885
Correct Answer:
Verified
Correct Answer:
Verified
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