Author Question: Tangshan Industries has issued a bond which has a 1,000 par value and a 15 percent annual coupon ... (Read 23 times)

Haya94 · **on:** Jul 10, 2018

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