What is yield to maturity on the bonds for lambda co

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Problem 1: Lambda Co. has bonds outstanding that mature in 10 years. The bonds have $1,000 par value, pay interest annually at a rate of 9%, and have a current selling price of $1,125. The yield to maturity on the bonds is:

Option 1. 7.20%.

Option 2. 14.40%.

Option 3. 10.12%.

Option 4. 9%.

Reference no: EM132643607

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