What is the yield to maturity for a 5% annual coupon bond trading at par? The bond matures in 10 years.
A . Less than 5%
B . Equal to 5%
C . Greater than 5%
D . Cannot be determined based on the given information
Answer: B
Explanation:
The yield to maturity for a bond trading at par will be identical to its coupon. Therefore the yield to maturity for this bond will be 5%
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