Presume semi-annual coupon payments, Operation Management

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What is the yield to maturity of a 16-year bond that pays a coupon rate of 8% per year, has a $1,000 par value, and is currently priced at $916? Round your answer to the nearest whole percent and assume semi-annual coupon payments.

a) 18%

b) 11%

c) 9%

d) 7.5%


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