Problempbj corp ussed bonds on jan 1 2006 the bonds had a, Ask an Expert

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Problem:

PBJ Corp. Ussed bonds on Jan 1 2006. The Bonds had a coupon rate of 5.5$ with interest paid semi-anually. The face value of the bonds is $1,000 and the bonds mature on Jan 1 2021.

Required:

Question: What is the yield to maturity for an PBJ corp bond on Jan 1 2012 if the market price of the bond on that date is $950.

A: 10.50%

B: 8.43$

C: 5.50$

D: 6.23%

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162915

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