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Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to you, the investor. Assume a $1,000 par value. Bonds
Given the purchase prices, coupons and maturities of four bonds, calculate the yields to maturity to you, the investor. Assume a $1,000 par value. Bonds A, B, and C are semi-annual. Bond D is a zero but calculate its yield with a semi-annual equivalency. Provide your answers to 4 significant digits (example: 6.1234%) Bond A Price 884.20, annual coupon 7%, maturing in 5 years Bond B Price 948.90, annual coupon 8%, maturing in 7 years Bond C Price 967.70, annual coupon 9%, maturing in 4 years Bond D Price 456.39, maturing in 10 years
A | B | C | D | |
YTM | ||||
Start | ||||
0.5 | ||||
1.0 | ||||
1.5 | ||||
2.0 | ||||
2.5 | ||||
3.0 | ||||
3.5 | ||||
4.0 | ||||
4.5 | ||||
5.0 | ||||
5.5 | ||||
6.0 | ||||
6.5 | ||||
7.0 | ||||
7.5 | ||||
8.0 | ||||
8.5 | ||||
9.0 | ||||
9.5 | ||||
10.0 |
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