Question

You own a bond that matures in 11 years. Currently, the bond is selling for $1,084.14....

You own a bond that matures in 11 years. Currently, the bond is selling for $1,084.14. The face value is $1000 and the coupon rate is 5.2% (paid annually).  

What is the yield to maturity?

Multiple Choice

  • 5.20 percent

  • 4.79 percent

  • 5.85 percent

  • 4.23 percent

  • 4.92 percent

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Homework Answers

Answer #1

Yield To Maturity

Coupon amount

Face Value

Current Price or Selling price

Number of years

In the question, the FOURTH option is the answer. ie, 4.23 %

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