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Webster's Has a 12-Year Bond Issue Outstanding That Pays a Coupon

Question 37

Multiple Choice

Webster's has a 12-year bond issue outstanding that pays a coupon rate of 6.5 percent.The bond is currently priced at $938.76 and has a par value of $1,000.Interest is paid semiannually.What is the yield to maturity?


A) 7.27%
B) 7.80%
C) 8.01%
D) 14.56%
E) 14.07% Webster's has a 12-year bond issue outstanding that pays a coupon rate of 6.5 percent.The bond is currently priced at $938.76 and has a par value of $1,000.Interest is paid semiannually.What is the yield to maturity? A) 7.27% B) 7.80% C) 8.01% D) 14.56% E) 14.07%

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