Question
1. (Yield to maturity) Assume the market price of a 14-year bond for Margaret Inc. is $800, and it has a par value of $1000.
1. (Yield to maturity) Assume the market price of a 14-year bond for Margaret Inc. is $800, and it has a par value of $1000. The bond has an annual interest rate of 7% that is paid semiannually. What is the yield to maturity of the bond?
2. (Yield to maturity) You own a 23-year bond that pays 13 percent interest annually. The par value of the bond is $1000 and the market price of the bond is $775. What is the yield to maturity of the bond?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
