Reference no: EM132916716

Problem 1: A Bristol Myer's Squibb $1,000 face value bond with 22 years to maturity and a 7.2% coupon (coupons paid semi-annually) recently sold for $1,063.66. The return on this bond is

a) 3.32264999% per 6 months compounded semi-annually.
b) 6.64529998% per year compounded semi-annually.
c) 6.64529998% per year effective.
d) 6.75570001% per year compounded semi-annually.
e) 6.75570001% per year effective.
f) 7.2% per year compounded semi-annually.
g) both a) and e) above.
h) both b) and e) above.
i) a), b) and e) above.
j) none of the above.