Tangshan Industries Has Issued a Bond Which Has a $1,000

Multiple Choice

Tangshan Industries has issued a bond which has a $1,000 par value and a 15 percent annual coupon interest rate. The bond will mature in ten years and currently sells for $1,250. Using this information, the yield to maturity on the Tangshan Industries bond is ________.

A) 10.79 percent
B) 11.39 percent
C) 12.19 percent
D) 13.29 percent