Question

Bare Trees United issued 20-year bonds 3 years ago at a coupon rate of 8.5 percent....

Bare Trees United issued 20-year bonds 3 years ago at a coupon rate of 8.5 percent. The bonds make semiannual payments. If these bonds currently sell for 91.4 percent of par value, what is the YTM?

Multiple Choice

  • 8.98 percent

  • 9.53 percent

  • 9.13 percent

  • 9.27 percent

  • 8.42 percent

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Answer #1

COUPON RATE 8.50% YEARS TO MATURITY 17 NPER 34 (years to maturity x 2) PMT 42.5 (face value x coupon rate)/2 FACE VALUE $1,00

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