A bond currently sells at 95% of face value in the marketplace (Face value is $1000) The bond pays semi-annual coupons with a coupon rate of 4.2% APR. The face value of the bond is $ 1000 and the bond will mature in exactly 9.5 years. What is the yield to maturity for this bond at the cument price? Express as an APR

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A bond currently sells at 95% of face value in the marketplace (Face value is $1000) The bond
pays semi-annual coupons with a coupon rate of 4.2% APR. The face value of the bond is $
1000 and the bond will mature in exactly 9.5 years. What is the yield to maturity for this bond
at the cument price? Express as an APR
Transcribed Image Text:A bond currently sells at 95% of face value in the marketplace (Face value is $1000) The bond pays semi-annual coupons with a coupon rate of 4.2% APR. The face value of the bond is $ 1000 and the bond will mature in exactly 9.5 years. What is the yield to maturity for this bond at the cument price? Express as an APR
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