Question
Hi could you help me with this question and confirm my answer, I got the bonds YTM as 6.2% but am unsure on how to
Hi could you help me with this question and confirm my answer, I got the bonds YTM as 6.2% but am unsure on how to convert it to effective annual yield! Thank you
Waterway, Inc., has bonds outstanding that will mature in 8 years. The bonds have a face value of $1,000. These bonds pay interest semiannually and have a coupon rate of 4.6 percent. If the bonds are currently selling at $901.92, what is the yield to maturity that an investor who buys them today can expect to earn?(Round answer to 1 decimal place, e.g. 5.2%.)
What is the bonds Yield to maturity?
What is the effective annual yield?(Round answer to 3 decimal places, e.g. 5.275%.)
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