Marvin's Interiors issued 10-year bonds 2 years ago. The bonds have a face value of $1,000,...

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Marvins Interiors issued 10-year bonds 2 years ago. The bonds have a face value of $1,000, a 5.0 perc semiannual coupon, and

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Answer 1

Answer #1

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Answer 2

Answer #2

SOLUTION :

Using online calculator for YTM , ref : https://dqydj.com/bond-yield-to-maturity-calculator/ :

Key -in the following :

Current market price ($) = 989

Bond Face Value ($) = 1000

Years to maturity (10 - 2) = 8

Annual coupon rate (%) = 5.0

Frequency of coupon = 2 (being semi-annual)

And see the result : YTM = 5.17 %

So, Option 2nd : 5.17 percent is the ANSWER.

answered by: Tulsiram Garg

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Answer 3

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