hard · Debt Capital Markets
A B2/B-rated borrower issues a 5-year senior unsecured bond with a 7.00% annual coupon at an Original Issue Discount (OID) of 98.00.
Using the standard practitioner's approximation, what is the effective annual yield to maturity?
- 7.40%
- 7.00%
- 6.60%
- 7.20%
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