45. What is the yield to maturity of a TVA bond that has a 9 1/2 percent coupon, pays interest semiannually, has 12 years to maturity, and sells for $871.50? a. 11.3% I b. 11.5% I c. 11.8% d. 12.1%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 14P: Current Yield with Semiannual Payments A bond that matures in 7 years sells for $1,020. The bond has...
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45. What is the yield to maturity of a TVA bond that has a 9 1/2 percent coupon, pays interest semiannually, has 12 years
to maturity, and sells for $871.50?
11.3%
b. 11.5%
c. 11.8%
d. 12.1%
Transcribed Image Text:45. What is the yield to maturity of a TVA bond that has a 9 1/2 percent coupon, pays interest semiannually, has 12 years to maturity, and sells for $871.50? 11.3% b. 11.5% c. 11.8% d. 12.1%
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