Question: Question 5 10 pts Cardinal Systems Co. plans to issue bonds with a par value of $1,000 and 20 years to maturity. These bonds will

Question 5 10 pts Cardinal Systems Co. plans to issue bonds

Question 5 10 pts Cardinal Systems Co. plans to issue bonds with a par value of $1,000 and 20 years to maturity. These bonds will pay $15 interest every 6 months. Current market conditions are such that the bonds will be sold to net $850.00. What is the yield to maturity (YTM) on an annual basis that a broker would quote to an investor?(You may have rounding error due depending on estimation of calculator or Excel). Choose closest answer. 8.2% 2.1% 4.1% 2.5%

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