Family shop in has a 1000 dollar par value bond that is currently selling for $1146.87. It has an annual coupon rate of 8.65% paid semi annually and has 15 years remaining until maturity.
Required:
Question: What is the annual yield to maturity on the bond if you purchased the bond today and hold it until maturity.
- 7.05%
- 6.24%
- 13.92%
- 11.29%
Note: Provide support for your rationale.