Question
A 25-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
| A 25-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 $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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Finance For IT Decision Makers
Authors: Michael Blackstaff
3rd Edition
1780171226, 978-1780171227
