Suppose that you have a bond that is currently trading for


Suppose that you have a bond that is currently trading for 1,234.56, has a time-to-maturity of 14 years, pays semi-annual coupon payments of $35.50, and a face value of $1,000. Also, suppose that the bond was purchased 90 days after its last, semi-annual coupon payment. What is this bond's effective yield-to-maturity (i.e. not what would be reported in the financial press)?

a. 4.68%

b. 4.84%

c. 5.18%

d. 5.52%

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Financial Management: Suppose that you have a bond that is currently trading for
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