Blue's Chips Inc. has a $1,000 par value bond that is currently selling for $1,300. It has an annual coupon rate of 7%, paid semiannually, and has nine years remaining until maturity. What is the annual yield to maturity on the bond?

(Round to the nearest whole percentage.)
A) 3.15%
B) 1.57%
C) 3.12%
D) 6.24%


Answer: A

Business

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