The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in five years. The bond certificate indicates that the stated coupon rate for this bond is 8.5% and that the coupon payments are to be made semiannually

Assuming that this bond trades for $1081.73, then the YTM for this bond is closest to ________.
A) 5.2%
B) 7.87%
C) 6.56%
D) 9.18%


Answer: C

Business

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