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A. What is the annual yield of a 7-year, 4.5% semi-annual coupon-paying bond priced today at $1,235? Par is $1,000. B. What is the annual

A. What is the annual yield of a 7-year, 4.5% semi-annual coupon-paying bond priced today at $1,235? Par is $1,000.

B. What is the annual yield of a 10-year, 7.25% annual coupon-paying bond priced today at $655? Par is $1,000

IMPORTANT: SHOW FORMULAS USED TO CALCULATE

TABLE A

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TABLE B

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A B 1 CF $ 2 3 4. 5 6 7 8 9 10 Coupon Par Start 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Yield 11 12 13 14 15 16 17 18 19 A B 1 CF $ 2. Coupon 3 Par 4 5 Start 1.0 2.0 6 7 8 9 10 11 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Yield 12 13 14 15

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