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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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
Transcribed Image Text:D-81 A corporate bond with a face (par) value of $10,000
will mature 7 years from today (it was issued 3 years
ago). The bond just after the 6th interest payment
is being sold for $6950. The bond's interest rate
is 4% nominal annual, payable semiannually. The
yield of the bond if held to maturity is in what
range?
(a) Less than 4%
(b) Between 4 and 6%
(c) Between 6 and 10%
(d) Greater than 10%
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