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1. A zero-coupon bond with face value $1,000 and maturity of six years sells for $745.22. a. What is its yield to maturity? (Round your

1. A zero-coupon bond with face value $1,000 and maturity of six years sells for $745.22.

a. What is its yield to maturity? (Round your answer to 2 decimal places.)

Yield to maturity %

b. What will the yield to maturity be if the price falls to $729? (Round your answer to 2 decimal places.)

Yield to maturity %

2.

Treasury bonds paying an 6.25% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annually? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Coupon rate %

3.

A 15-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%.

a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $960. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)

Bond equivalent yield to maturity %
Effective annual yield to maturity %

b. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,000. (Do not round intermediate calculations.Round your answers to 2 decimal places.)

Bond equivalent yield to maturity %
Effective annual yield to maturity %

c. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,050. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)

Bond equivalent yield to maturity %
Effective annual yield to maturity %

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