Question
. A 15-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 6%. a. Find the bond equivalent and
.
A 15-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 6%.
a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $930. (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 $1,030. (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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Essentials Of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
6th Edition
0073226386, 978-0073226385
