A 20-year maturity, $1,000 par bond was issued 8 years ago. It carried a 2.75% fixed coupon that is paid semiannually in two equal payments. It is priced today at $990.25. If purchased, what is the investor's yield to maturity? 2.8465% 2.8141% 1.4070% 1.4232%

A 20-year maturity, $1,000 par bond was issued 8 years ago. It carried a 2.75% fixed coupon that is paid semiannually in two equal payments. It is priced today at $990.25. If purchased, what is the investor's yield to maturity? 2.8465% 2.8141% 1.4070% 1.4232%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8P

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Vijay

A 20-year maturity, $1,000 par bond was issued 8 years ago. It carried a 2.75% fixed coupon
that is paid semiannually in two equal payments. It is priced today at $990.25. If purchased,
what is the investor's yield to maturity?
2.8465%
2.8141%
1.4070%
1.4232%

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