A 20 year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate of 8 Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is a $950 b $1,000 c $1,050 ...

a On a financial calculator enter the following n 40 FV 1000 PV 950 PM ...

A 20-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate

Question:

A 20-year bond with of $1,000 makes semiannual payments at a rate of 8%. Find the bond equivalent and effective annual yield to of the bond if the bond price is:
a. $950.
b. $1,000.
c. $1,050.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...