Question
A two-year bond with par value $1,000 making annual coupon paymnts of $96 is priced at $1,000. a. What is the yield to maturity of
A two-year bond with par value $1,000 making annual coupon paymnts of $96 is priced at $1,000.
a. What is the yield to maturity of the bond?
b. What will be the realized compound yield to maturity if the one-year interest rate next year turns out to be (a) 7.6%, (b) 9.6%, (c) 11.6%?(Do not round intermediate calculations. Round your answers to 2 decimal places)
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Business And Personal Finance
Authors: McGraw-Hill
1st Edition
0078945801, 9780078945809
