[Solved] I Purchase a 10 Percent Coupon Bond

Question 69

Multiple Choice

Question 69

I purchase a 10 percent coupon bond. Based on my purchase price,I calculate a yield to maturity of 8 percent. If I hold this bond to maturity,then my return on this asset is

A)10 percent.
B)8 percent.
C)12 percent.
D)there is not enough information to determine the return.

Correct Answer:

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