9. A bond has a time-to-maturity of 8 years, a coupon rate of 5%, is currently selling for $1021.35. What is the bond's yield if it pays interest annually? A. 4.6740%. B. 5.6874%. C. 3.2654%. D, 4.0258%.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter5: The Cost Of Money (interest Rates)
Section: Chapter Questions
Problem 7PROB
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9. A bond has a time-to-maturity of 8 years, a coupon rate of 5%, is currently selling for $1021.35.
What is the bond's yield if it pays interest annually?
A. 4.6740%.
B. 5.6874%.
C. 3.2654%.
D, 4.0258%.
Transcribed Image Text:9. A bond has a time-to-maturity of 8 years, a coupon rate of 5%, is currently selling for $1021.35. What is the bond's yield if it pays interest annually? A. 4.6740%. B. 5.6874%. C. 3.2654%. D, 4.0258%.
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