Multiple Choice
A four-year bond has an 8% coupon rate and a face value of $1,000.If the current price of the bond is $878.31,calculate the yield to maturity of the bond (assuming annual interest payments) .
A) 8%
B) 10%
C) 12%
D) 6%
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q16: The spread of junk bond yields, over
Q29: From the investor's perspective, briefly describe the
Q33: Define the term real interest rate.
Q37: Briefly explain the term yield to maturity.
Q40: Long-term spot rates are usually higher than
Q53: A government bond issued in Germany has
Q54: If the term structure of interest rates
Q55: Which of the following bonds has the
Q57: If the nominal interest rate per year
Q60: A five-year treasury bond with a coupon