A plain vanilla coupon bond is currently selling for $980.25. In searching for the bond’s yield to maturity you try 7 percent and find that the present values of the bond’s coupons and par value sum to $985.00. Based on this information you know that:

there is insufficient information to answer the question.

the yield to maturity must be more than 7 percent.

the yield to maturity is equal to 7 percent.

the yield to maturity must be less than 7 percent.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The yield to maturity must be more t... View the full answer