Question
Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity;
Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value bond paying 8 percent interest semiannually. The market price of the bond is $850.
Find the yield-to-maturity of the bond.
A. 8.46%
B. 9.13%
C.9.5%
D.10.45%
E.12.20%
Based on your risk assessment, your required rate of return is 9 percent for a bond you own. It has 10 years left to maturity; it is a $1,000 par value zero coupon bond. The market price of the bond is $850.
Find the value of the bond to you.
A. | $395.60 | |
B. | $422.41 | |
C. | $550.12 | |
D. | $590.90 | |
E. | $605.12 |
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