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For the following questions, assume the normal case that coupon payments are semi-annual. 8. What is the yield to maturity on a 18 -year, 7.3%

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For the following questions, assume the normal case that coupon payments are semi-annual. 8. What is the yield to maturity on a 18 -year, 7.3% coupon bond if the bond is currently selling for $1,000 ? b. For the bond above, suppose that immediately after purchase market rases change to 290%. If you hold the bond for 3 years and then sell it, what is your affective annual meturn on this investment? a. The YTM is (enter response rounded to decimal places: Le. xx0 ) b. Your eflective antwal roturn is 6 (enter msponse rounded to decimar places: i.e., x.xosi)

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