You are interested in buying the following bond: A 25-year semi-annual coupon bond with the coupon rate of 4.4%, face value of $1,000, and the current market price of $1,045. Based on the information above, what is the yield to maturity (YTM) of this bond? 3.740% O4.110% 2.055% 4.570% 2.285%

You are interested in buying the following bond: A 25-year semi-annual coupon bond with the coupon rate of 4.4%, face value of $1,000, and the current market price of $1,045. Based on the information above, what is the yield to maturity (YTM) of this bond? 3.740% O4.110% 2.055% 4.570% 2.285%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter12: Investing In Stocks And Bonds

Section: Chapter Questions

Problem 6FPE

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Question

Radhubhai

You are interested in buying the following bond: A 25-year semi-annual coupon bond with the
coupon rate of 4.4%, face value of $1,000, and the current market price of $1,045. Based on the
information above, what is the yield to maturity (YTM) of this bond?
3.740%
O4.110%
2.055%
4.570%
2.285%

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