A coupon bond that pays interest of $60 annually has a par value of $1,000, matures in 5 years, and is selling today at an $84.52 discount from par value. The yield to maturity on this bond is _________.

A. 6%
B. .23%
C. 8.12%
D. 9.45%


C. 8.12%

Calculator entries are N = 5, PV = -915.48, PMT = 60, FV = 1,000, CPT I/Y --> 8.12

Business

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