A $1,000 (par value) bond with a coupon rate of 10%, interest paid semiannually, matures in ten years and sells for $940.25. What is the yield to maturity?
A. 
11.0% 

B. 
10.4% 

C. 
5.2% 

D. 
5.5% 
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N = 10*2 = 20 (There will be semiannual payments for 10 years, so 20 payments)
PV = 940.25 (The present value of the bond is $940.25)
PMT => 10% of 1,000 = 100/2 = 50 ( The coupon 10% is on Face Value, as semiannual so divided by 2)
FV = 1,000 (The Face value of bond is $1,000)
CPT + I/Y = 5.49
5.49 is semiannual, so annual will be 5.49*2 = 11
So the correct option is "A"
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