What is the yield to maturity of a nine-year, $5,000 bond with a 4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,526? OA. 7.48% OB. 5.34% OC. 6.41% OD. 2.67%

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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What is the yield to maturity of a nine-year, $5,000 bond with a 4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,526?
OA. 7.48%
B. 5.34%
OC. 6.41%
D. 2.67%
Transcribed Image Text:What is the yield to maturity of a nine-year, $5,000 bond with a 4% coupon rate and semiannual coupons if this bond is currently trading for a price of $4,526? OA. 7.48% B. 5.34% OC. 6.41% D. 2.67%
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