3-2

Calculate the yield to maturity on the following bonds: a. A 8 percent coupon (paid semiannually) bond, with a $1,000 face value and 20 years remaining to maturity. The bond is selling at $885. b. An 5.1 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $917. c. An 7.1 percent coupon (paid annually) bond, with a $1,000 face value and 8 years remaining to maturity. The bond is selling at $1,067. (For all requirements, do not round intermediate calculations. Round your percentage answers to 3 decimal places. (e.g., 32.161))