question 2 (1 point)\na $10000 8 percent coupon bond that sells for $10000 has a yield to maturity of…

question 2 (1 point)\na $10000 8 percent coupon bond that sells for $10000 has a yield to maturity of ________.\n\n12 percent\n8 percent\n10 percent\n14 percent

question 2 (1 point)\na $10000 8 percent coupon bond that sells for $10000 has a yield to maturity of ________.\n\n12 percent\n8 percent\n10 percent\n14 percent

Answer

Explanation:

Step1: Recall bond - yield formula

When a bond sells at par value (face - value = price), the yield to maturity (YTM) is equal to the coupon rate.

Step2: Identify given values

The face - value of the bond $F = 10000$, the price of the bond $P=10000$, and the coupon rate $r = 8%$. Since $P = F$, YTM = coupon rate.

Answer:

8 percent