The 8.5 percent annual coupon bonds of Eberly, Inc. are selling for $930.12. The bonds have a face value of $1,000 and mature in 9 years. What is the yield to maturity?

a. 4.84 percent

b. 5.24 percent

c. 8.12 percent

d. 9.31 percent

E. 9.70 percent

Answer: The correct answer is 9.70 percent.

Enter 9 -930.12 85 1,000

N I/Y PV PMT FV

6 | Page

Solve for 9.70

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