Open Question: Can someone please help me with this financial problem?
The bonds issued by Jordache Jewelers bear a 7.5% coupon,payble semiannually.The bonds mature in 13 yrs and have a 1,000 face value.Currently,the bonds sell at par.What is the yield to maturity?
A)7.67%
B)7.41%
C)7.46%
D)7.50%
E)7.33%
Ok I know the answer and the answer is D but my question is u don't really have to solve this problem, right? The keyword says the bonds sell at par so I should know that when it says bonds sells at a par, its equal to it's annual coupon bond. Because when I tried using a financial calculator, it didn't come out to be 7.50%. It came out to be 0.20%. So like I said, you don't have to solve this problem really right?