A corporate bond with a BB rating is currently selling for 95. If the bond has a coupon of 6% and matures in 10 years, its yield to maturity is closest to A) 6.32% B) 5.37% C) 5.71% D) 6.67%

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

answer; blank(1); /rises; blank(2); //increases;

answer; measurable outcome;