How much would be your total yield if you sell this bond


Last year, you bought a bond with face value $1000, maturity 15 years, coupon rate of 7% per year payable semi-annually and yield to maturity of 5.5% per year. Currently the bond sells for $900. How much would be your total yield if you sell this bond today?

a. 17.84%

b. 13.71%

c. 10.78%

d. 15.79%

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Financial Management: How much would be your total yield if you sell this bond
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