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borteleto borteleto
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5 years ago
In 2000 Jenson Inc. issued bonds with an 8 percent coupon rate and a $1,000 face value. The bonds mature on March 1, 2025. If an investor purchased one of these bonds on March 1, 2012, determine the yield to maturity if the investor paid $1,100 for the bond.
A) 7%
B) The yield to maturity is $900 ($1,000 interest less $100 capital loss).
C) The yield to maturity must be greater than 8% because the price paid for the bond exceeds the face value.
D) 5.4%
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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wrote...
5 years ago
 A
 
borteleto Author
wrote...
5 years ago
Tremendous help, I just double-checked it with my friend Smiling Face with Open Mouth
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