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Generic, Inc. has bonds outstanding that mature in 20 years. The bonds have $1,000 par value, pay interest annually at a rate of 10%, and have a current selling price of $875.25. The yield to maturity on the bonds is:

a. 10%.

b. 11.63%.

c. 7.24%.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M942358

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