Family shop in has a 1000 dollar par value bond that is, Ask an Expert

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Family shop in has a 1000 dollar par value bond that is currently selling for $1146.87. It has an annual coupon rate of 8.65% paid semi annually and has 15 years remaining until maturity.

Required:

Question: What is the annual yield to maturity on the bond if you purchased the bond today and hold it until maturity.

7.05%
6.24%
13.92%
11.29%

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163420

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