What is the ytm


The current market price of Smith Corporation's 10 percent, 10 year bonds is $1,297.58. A 10 percent coupon interest rate is paid semiannually, and the par value is equal to $1,000. What is the YTM (stated on a nominal, or annual, basis) if the bonds mature 10 years from today?

a. 8%

b. 6%

c. 4%

d. 2%

e. 1%

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