Question
1. A bond with a par value of $1000 makes semiannual coupon payments of $48. What is its coupon rate 2. In general, as the
1. A bond with a par value of $1000 makes semiannual coupon payments of $48. What is its coupon rate
2. In general, as the maturity of bonds increases, the yield to maturity
a. also increases. |
b. remains constant. |
c. decreases. |
d. There is no relationship between maturity and yield.
3. A 5-year semiannual coupon bond with a face value of $1000 trades at $939. The market-determined discount rate is 5%. What is the coupon rate? Answer in percent and round to two decimal places. 4.A zero coupon bond with a face value of $1000 that matures in 18 years sells today for $558. What is the yield to maturity? (Use annual compounding.) Enter in percent to two decimal places. 5. A semiannual coupon bond with a coupon rate of 9% and the face value of $1000 trades at $900. It matures in 15 years. What is its yield to maturity (YTM)? Answer in percent and round to two decimal places.
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