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A Corporate Bond with a Face Value of $1,000 Matures

Question 13

Multiple Choice

A corporate bond with a face value of $1,000 matures in 4 years and has a 8% coupon paid at the end of each year.The current price of the bond is $932.What is the yield to maturity for this bond?


A) 5.05%.
B) 8.58%.
C) 10.15%.
D) 11.92%.
E) 6.48%.

Correct Answer:

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