Posted by **Adrian** on Tuesday, January 11, 2011 at 3:46am.

A bond price of $987.50 has a face value of $1000, pays 5% semiannually, and will repay the face value in 15 years.

5% tables Present Values Pv Annuity

year 13 .53032 9.39357

year 14 .50507 9.89864

year 15 .48102 10.37966

What is the yield to maturity of the loan

a) 4.9%

b) 5.14%

c) 5.00%

d) 2.57%

Can you please include how you got the answer?

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