Thursday, August 15, 2013

Gator Electronics AA corporate bond has a face value of $1,000 and an annual coupon interest rate of 7%

Gator Electronics AA corporate bond has a face value of $1,000 and an annual coupon interest rate of 7%. Interest is paid annually. Ten years of the life of the bond remain. The current market price of the bond is $872. To the nearest whole percent, what is the yield to maturity (YTM) of the bond today?

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