Problem:
Adam's Enterprises' noncallable bonds currently sell for $1,230. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000.
Required:
Question: What is their yield to maturity?
- 5.56,
- 6.33,
- 5.25,
- 7.03,
- 6.11
Note: Provide support for your underlying principle.