Suppose a five-year bond with a 7% coupon rate and semiannual compounding is trading for a price of $951.58. Expressed as an APR with semiannual compounding, this bonds yield to maturity (YTM) is closest to:
A) 7.0%
B) 7.5%
C) 7.8%
D) 8.2%
Answer: D PMT = 35, FV = 1000, PV = -951.58, N = 10, Compute I = 4.099949 × 2 =8.199898%