Bonds : Yield to Maturity
If a bond is selling in the open market for $1,850.00, with a par value of $1000 and a coupon rate of 10%, we can say:
a. The YTM (Yield to Maturity) of the bond is significantly higher than 10%
b. The YTM of the bond is significantly lower than 10%
c. The YTM of the bond is equal to 10%
d. None of these is true.