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An 8-year semiannual bond with a face value of $1,000 and a coupon rate of 5% sells at $913.40. The YTM of the bond is
An 8-year semiannual bond with a face value of $1,000 and a coupon rate of 5% sells at $913.40. The YTM of the bond is
Question 5 options:
| 5.5% |
| 5.8% |
| 6.4% |
| 6.9% |
| 7.3% |
Consider a 30-year semiannual bond with a face value of $1,000, coupon rate of 3.5% and a market price of $1,006.95. The bond is callable in 3 years at the price of $1,030. The yield to call of this bond is
Question 6 options:
| 4.2% |
| 5.5% |
| 6.4% |
| 7.7% |
| 8.1% |
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