Benson Biometrics Inc., has outstanding $1,000 face value 8% coupon bonds that make semiannual payments, and have

Question:

Benson Biometrics Inc., has outstanding $1,000 8% bonds that make semiannual payments, and have 14 years remaining to maturity. If the current price for these bonds is $987.24, what is the annualized yield to maturity?
A) 8.15%
B) 8.64%
C) 8.38%
D) 8.00%
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...