James buys a newly issued, $1,000 face value, 10-year maturity bond with a coupon rate of...

James buys a newly issued, $1,000 face value, 10-year maturity bond with a coupon rate of 12% (coupons are semi-annual) at $1,000. What is the current yield to maturity (YTM, nominal and semi-annually compounded) of this bond?

A. 13.42%
B. 10%
C. 8%
D. 12%

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Expert Solution

jeff jeffy answered 1 year ago

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