Compute what is the yield to maturity on the bond

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Problem 1: A $5,000 face value municipal bond matures in 10 years and is priced at $4,850. The coupon rate is 4.75% with interest paid semiannually. What is the yield to maturity on the bond?

Multiple Choice

Option 1: 5.61%

Option 2: 5.85%

Option 3: 5.40%

Option 4: 5.14%

Option 5: 4.77%

Reference no: EM132668626

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