$-$FTRA $/$ Corporate Finance Spring $2025$ Second Midterm Exam $-$ Requires Respond.

Question $3(0\mathrm{.}357143$ points$)$

$3$

A newly issued bond has a coupon rate of $6\mathrm{.}4$ percent and semiannual interest payments. The bonds are currently priced at par. The yield to maturity earned by these bonds must be:

$6$

$3\mathrm{.}2$ percent.

greater than $3\mathrm{.}2$ percent but less than $6\mathrm{.}4$ percent.

$6\mathrm{.}4$ percent.

$12$

greater than $6\mathrm{.}4$ percent.

less than $3\mathrm{.}2$ percent.