Question: Tesla would like to issue 40 year, 6.8% coupon bonds, paid monthly, with a principal of $100. What is the annual YTM of these bonds

Tesla would like to issue 40 year, 6.8% coupon bonds, paid monthly, with a principal of $100. What is the annual YTM of these bonds if the fair price of the bond is $99.00?

a. 0.6%

b. 6.9%

c. 5.3%

d. 4.2%

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