(Q. 17 IN B) WHAT IS THE YIELD TO MATURITY FOR A BOND PAYING $100...
12. (Q. 17 in B) What is the yield to maturity for a bond paying $100 coupon
annually that has six years until maturity and sells for $1,074.22? The bond has a
face value of $1,000 and pays semi-annual coupons.
A) 4.20 percent
B) 4.66 percent
C) 8.40 percent
D) 9.31 percent
Answer C
Using your calculator, 50 (PMT), 1000 (FV), 12 (N), -1074.22 (PV), CPT I/Y =