Question
1) A coupon bond that pays interest of $90 annually has a par value of $1000, matures in 3 years, and is selling today at
1) A coupon bond that pays interest of $90 annually has a par value of $1000, matures in 3 years, and is selling today at a $65 discount from par value. The yield to maturity on this bond is _________. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"
2)A callable bond pays annual interest of $50, has a par value of $1000, matures in 3 years but is callable in 2 years at a price of $1015, and has a value today of $990. The yield to call on this bond is _________. Note: Express your answers in strictly numerical terms. For example, if the answer is 5%, write 0.05"
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