Question
1) What is the YTM of a bond if it is sold for $1,029.33, pays a semi-annual coupon of $40, and matures in 15 years?
1) What is the YTM of a bond if it is sold for $1,029.33, pays a semi-annual coupon of $40, and matures in 15 years? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)
2)A bond is sold for $1,054.88 currently. The bond has a coupon rate of 6%, paid semi-annually and it matures in 15 years. What is the yield-to-maturity of this bond? Round to the nearest hundredth percent. Do not include a percent sign in your answer. (i.e. If your answer is 4.32%, then type 4.32 without a % sign)
3)What is the price of a $1,000 par value bond with an 8% coupon rate paid annually, and 6 years to maturity if the bond is currently sold at the yield-to-maturity of 7.32%? Round to the nearest cent. Do not a dollar sign in your answer. (i.e. If your answer is $432.51, then type 432.51 without $ sign)
PLEASE SOLVE ALL 3 WITH EXPLANATIONS/WORK
Thank you
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