What is the annual yield to maturity on the bond

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Reference no: EM131332590

Frazier Fudge has a $1,000 par value bond that is currently selling for $1,300. It has an annual coupon rate of 7%, paid semiannually, and has nine years until maturity. What is the annual yield to maturity on the bond (rounded to the nearest whole percentage)?

a. 7%

b. 5%

c. 3%

d. 9%

Reference no: EM131332590

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