Bond Scenario 3: At what price would the YTM equal 7%?

Compute using annual payment.

Compute using semi-annual payments.

Compute using quarterly payments.

background to the question: (these following question were asked before this one)

Scenario 1: 10 year bonds, originally issued

with a stated rate of 8% and a face value of

$1,000,000, are

currently selling @ $1,125,000 (Market Value)

after 2 years. Tax Rate = 35%.

Compute the yield to maturity (YTM).

Scenario 2: 10 year bonds, originally issued

with a stated rate of 8% and a face value of

$1,000,000, are

currently selling @ $990,000 (Market Value)

after 2 years. Tax Rate = 35%.

= Compute the yield to maturity (YTM).