Question
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective
A 25-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%.
a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $960. (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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The Option Trader Handbook
Authors: George Jabbour
2nd Edition
0470481617, 978-0470481615
