Question
a. The market price of a semi-annual pay bond is $950.27. It has 17.00 years to maturity and a coupon rate of 8.00%. Par value
a. The market price of a semi-annual pay bond is $950.27. It has 17.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the yield to maturity?Answer Format: Percentage Round to: 4 decimal places
b. The market price of a semi-annual pay bond is $953.72. It has 19.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the yield to maturity? Answer Format: Percentage Round to: 4 decimal places
c. The market price of a semi-annual pay bond is $976.58. It has 11.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the effective annual yield? Answer Format: Percentage Round to: 4 decimal places
d. A tax-exempt municipal bond with a coupon rate of 8.00% has a market price of 98.60% of par. The bond matures in 20.00 years and pays semi-annually. Assume an investor has a 39.00% marginal tax rate. The investor would prefer otherwise identical taxable bond if it's yield to maturity was more than _____% Answer Format: Percentage Round to: 2 decimal places
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