Question
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,
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
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
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