Question

On April 1, Braintree Corporation issued 10%, ten-year, $300,000 bonds at 106. The effective interest rate for these bonds is

a) 4.7%.

b) 9.43%.

c) 10%.

d) 5%

Answer 1

Step-by-step explanation:

Interest rate = YTM = 10 + [ 100-106]/10]/ (100+106)/2

Answer 2

i think the answer is B. 9.43%.