As an investment analyst for a fund that invests in bonds, you are tasked with evaluating the
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Question:
As an investment analyst for a fund that invests in bonds, you are tasked with evaluating the efficacy of a potential investment. You are given a bond that has a 4% coupon rate and matures 4 years from now. The price of the bond is $890. What is the yield-to-maturity (YTM) of the bond?
a. 6.79%
b. 2.96%
c. 7.27%
d. 5.75%
Related Book For
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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