Question
A 10-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 5%. 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 5%.
a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $940. (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 $1,060. (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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Government And Not For Profit Accounting Concepts And Practices
Authors: Michael H. Granof, Saleha B. Khumawala, Thad D. Calabrese
9th Edition
1119803896, 978-1119803898
