Question
A 10-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 9%. a. Find the bond equivalent and effective
A 10-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 9%.
a.Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is$950.(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 $1,040.(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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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
