The bonds of a company have a face value of $1,000, pay an annual coupon of 7%, and have 5 years remaining to maturity. If the market price of these bonds today is $941 their yield to maturity is closest to: Options a) 7.1% b) 7.3% c) 8.3% d) 8.5%

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 1P
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The bonds of a company have a face value of $1,000, pay an annual coupon of 7%, and have 5 years remaining to maturity. If the market price of these bonds today is $941 their yield to maturity is closest to:

Options

a) 7.1%

b) 7.3%

c) 8.3%

d) 8.5% 

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