Question
4. Bond Valuation Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to you, the investor. Assume a $1,000
4. Bond Valuation
Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to you, the investor. Assume a $1,000 par value. Bonds A, B, and C are semi-annual. Bond D is a zero but calculate its yield with a semi-annual equivalency. Provide your answers to 4 significant digits (example: 6.1234%)
Bond A Price 984.00, annual coupon 3%, maturing in 2 years
Bond B Price 799.00, annual coupon 6%, maturing in 5 years
Bond C Price 767.00, annual coupon 5%, maturing in 10 years
Bond D Price 566.34, maturing in 8 years
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