Question
A bond's market price is $ 750 . It has a $ 1,000 par value, will mature in 10 years, and has a coupon interest
A bond's market price is $750. It has a $1,000 par value, will mature in 10years, and has a coupon interest rate of 9 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 20 years? What if it matures in 55 years?
a The bond's yield to maturity if it matures in 10 years is____%. (Round to two decimal places.)
b. The bond's yield to maturity if it matures in 20 years is_____ %. (Round to two decimal places.)
c. The bond's yield to maturity if it matures in 5 years is_____ %. (Round to two decimal places.)
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