Question: Yield to maturity takes into account everything except: a. Annual interest received b. The difference between the current bond price and its maturity value c.

Yield to maturity takes into account everything except:

a.

Annual interest received

b.

The difference between the current bond price and its maturity value

c.

The number of years to maturity

d.

The number of years since the bonds purchase

What is the price of a $1,000 perpetual par bond with a coupon rate of 10 percent and a current yield of 8 percent?

a.

$1,000

b.

$800

c.

$920

d.

$1,250

e.

$925.93

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