Suppose that you have a bond that has a par value of $1,000 and a coupon interest rate of 9%. Its current price is $950 and it will mature in 7 years. What is the yield to maturity?

A) 8.45%
B) 9.00%
C) 10.03%
D) 10.23%

Answer: C

Business

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What will be an ideal response?

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Debt holders can be thought of as owning the firm but having ________ a call option on the assets of the firm with a strike price equal to ________

A) written, face value of debt B) bought, face value of debt C) written, value of equity D) bought, value of equity

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