8. A bond is offered for sale for $1,120. Its face value is $1,000 and the interest is 11% payable annually. What yield to maturity will be received if the bond matures 10 years hence?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 11P
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8. A bond is offered for sale for $1,120. Its face value is $1,000 and the interest is 11% payable
annually. What yield to maturity will be received if the bond matures 10 years hence?
Transcribed Image Text:8. A bond is offered for sale for $1,120. Its face value is $1,000 and the interest is 11% payable annually. What yield to maturity will be received if the bond matures 10 years hence?
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