Answer:
The answer is A.
Step-by-step explanation:
Yield-to-maturity is the rate of return an investor is expecting from his bonds.
Number of years (N) - 20 years
Yield-to-maturity(YTM) - ?
Present Value(price of bond) = $956.08
Future Value(FV) = $1,000
Payment Coupon(PMT) = $64(6.4% x $1000)
Using a Financial calculator, the Yield-to-maturity (YTM)
= 6.81%