Question
A 10-year maturity bond with par value of $1,000 makes semiannual coupon payments at a coupon rate of 5%. a. Find the bond equivalent and
A 10-year maturity bond with par value of $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
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.)
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.)
Effective annual yield to maturity ________________%
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
