A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal to %. (Round your response to the nearest whole number) What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $990, pays an annual coupon of $70, and whose price today is $1009.50? OA. 6% OB. 5% OC. 7% OD. 4% OE. 8% If the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be its face value.
A coupon bond with a face value of $1200 that pays an annual coupon of $200 has a coupon rate equal to %. (Round your response to the nearest whole number) What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $990, pays an annual coupon of $70, and whose price today is $1009.50? OA. 6% OB. 5% OC. 7% OD. 4% OE. 8% If the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be its face value.
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 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...
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