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What Is the Approximate Yield to Maturity for a $1,000

Question 45

Multiple Choice

What is the approximate yield to maturity for a $1,000 par value bond selling for $1,120 that matures in 6 years and pays 12 percent interest annually?


A) 8.5 percent
B) 9.4 percent
C) 12.0 percent
D) 13.2 percent

Correct Answer:

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