Collingwood Homes has a bond issue outstanding that pays an $8\mathrm{.}5$ percent coupon and matures in $16\mathrm{.}5$ years. The bonds have a par value of $$1,000$ and a market price of $$944\mathrm{.}30.$ Interest is paid semiannually. What is the yield to maturity?

Use the Bond Valuation formula in Problem $1.$ In this case since bond is a semiannual bond. C$=$coupon amount to be divided by $2,$ yield to maturity divided by $2,$ and time period to be doubled.

Bond Value $=$ PV of coupons $+$ PV of par

Bond Value $=$ PV of annuity $+$ PV of lump sum

C$=$ Coupon amount$=$ Coupon rate X face value of bond $($$$1000)$

Semiannual Bond Value $=$

Question Blank $1$ of $4$

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C$=$

Question Blank $2$ of $4$

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T $=$

Question Blank $3$ of $4$

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FV $=$

Question Blank $4$ of $4$

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