West Corp. issued 15-year bonds 2 years ago at a coupon rate of 9.8 percent. The bonds make semiannual payments. If these bonds currently sell for 104 percent of par value, what is the YTM? Multiple Choice 4.63% 9.26% 8.34% 10.19% 11.12%
Added by Juan Carlos D.
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- Coupon rate = 9.8% - Par value = 100% (assume $1,000 for calculation) - Current price = 104% of par value = $1,040 - Time to maturity = 15 years - 2 years = 13 years - Semiannual payments Show more…
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