A coupon bond with a face value of $1000 that pays an annual coupon of $300 has a coupon rate equal to %. (Round your response to the nearest whole number)
What is the approximate (closest whole number) yield to maturity on a coupon bond that matures one year from today, has a par value of $1010, pays an annual
coupon of $70, and whose price today is $1009.50?
A. 5%
B. 4%
C. 7%
D. 8%
E. 6%
If the yield to maturity on a bond exceeds its coupon rate, the price of the bond will be its face value.