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Homework answers / question archive / A bond with a par value of $1,000 has annual interest payment of $75
A bond with a par value of $1,000 has annual interest payment of $75. The bond currently sells for $937.5 and has 7 years to maturity. Which of the following is true?
A) The yield-to-maturity must be 8.5%.
B) The current yield on the bond must be 8%.
C) The investor's required rate of return must be 7.5%.
D) The coupon rate must be 8.5%.
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