A coupon bond that pays interest annually is selling at a par value of $1,000, matures in five years, and has a coupon rate of 9%. The yield to maturity on this bond is
A. 8.0%.
B. 8.3%.
C. 9.0%.
D. 10.0%.
E. None of the options are correct.
C. 9.0%.
When a bond sells at par value, the coupon rate is equal to the yield to maturity.
You might also like to view...
This act is involuntary and happens automatically
A) hearing B) responding C) listening D) feedback
Guided by marketing strategy, a company designs a marketing mix made up of factors under its control
Indicate whether the statement is true or false
Many banks, accounting firms, and consulting companies use seminars to generate new prospects
Indicate whether the statement is true or false
When defining information (fields) for a relation, you should ensure that:
A. the information for this relation cannot be derived from other information. B. the information for this relation can be found in other relations. C. the information can be identified by the primary key and by other fields in the relation. D. the information can be identified by the foreign key in this relation.