Problem:
Mary wants to invest her recent bonus in an eight-year, 10 percent coupon bond that pays semiannual coupon payments. The bonds are selling at $943.56 today.
Required:
Question: If she buys this bond and holds it to maturity, what would be her yield-to-maturity?
- 11.08%
- 12.59%
- 5.44%
- 9.80%
Note: Show all workings.