A heights inc bonds have a coupon rate of 7 a yield to, Ask an Expert

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A Heights Inc. bonds have a coupon rate of 7%, a yield to maturity of 10%, a face value of $1,000, and mature in 10 years. Which of the following statements is MOST correct?

A. an investor who purchases the bond today will earn a return of 7% if he sells the bond after one year.

B. an investor who purchases the bond today will earn a return of 17% per year if he holds the bond until it matures

C. an investor who purchases the bond today will earn a return of 10% if he sells the bond after one year

D. an investor who purchases the bond today will earn a return of 10% per year if he holds the bond until it matures.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91271624

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