Question

A coupon bond that pays interest of $40 semi-annually has a par value of $1,000, matures in four years, and is selling today at a $36 discount from par value. The yield to maturity on this bond is

A. 8.69%.

B. 9.09%.

C. 10.43%.

D. 9.76%.

E. None of the options are correct.

Answer

This answer is hidden. It contains 36 characters.