Tangshan Industries has issued a bond which has a $1,000 par value and a 15 percent annual coupon interest rate. The bond will mature in 5 years and currently sells for $1,250. Using this information, the yield to maturity on the Tangshan Industries bond is ________. Select one: a. 11.39 percent b. 13.29 percent c. 11.11 percent d. 8.8 percent

Tangshan Industries has issued a bond which has a $1,000 par value and a 15 percent annual coupon interest rate. The bond will mature in 5 years and currently sells for $1,250. Using this information, the yield to maturity on the Tangshan Industries bond is ________. Select one: a. 11.39 percent b. 13.29 percent c. 11.11 percent d. 8.8 percent

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 13P

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