Given the Bond Described Above,if Interest Were Paid Semi-Annually (Rather

Multiple Choice

Given the bond described above,if interest were paid semi-annually (rather than annually) ,and the bond continued to be priced at $850,the resulting effective annual yield to maturity would be: $$\begin{array} { | l | l | } \hline \text { Par Value } & \$ 1,000 \\\hline \text { Time to Maturity } & 20 \text { years } \\\hline \text { Coupon } & 10 \% \text { (paid annually) } \\\hline \text { Current Price } & \$ 850 \\\hline \text { Yield to Maturity } & 12 \% \\\hline\end{array}$$

A) Less than 12%
B) More than 12%
C) 12%
D) Cannot be determined
E) None of the above