Tangshan Industries has issued a bond which has a 1,000 par value ...

[Haya94]

Tangshan Industries has issued a bond which has a 1,000 par value and a 15 percent annual coupon interest rate. The bond will mature in ten years and currently sells for 1,250.
 
  Using this information, the yield to maturity on the Tangshan Industries bond is ________.
  A) 10.79 percent
  B) 11.39 percent
  C) 12.19 percent
  D) 13.29 percent

Question 2

On average in U.S., during the past 75 years, the return on large-company stocks has exceeded the return on long-term corporate bonds.
 
  Indicate whether the statement is true or false

[apple]

Answer to Question 1

A

Answer to Question 2

TRUE

[Haya94]

Excellent

[Mochi]

Gracias!