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Just need the answer to part B. Thanks! Pina bought a 6% coupon, $20,000 face value corporate bond for $21,000 when it had 10 years
Just need the answer to part B. Thanks!
Pina bought a 6% coupon, $20,000 face value corporate bond for $21,000 when it had 10 years remaining until maturity. What are her nominal and effective yields to maturity on the bond?(Round your answers to two decimal places.)
A.YTM= 5.35%
B. f= ____%
Assume that:
Bond interest is paid semiannually.
The bond was originally issued at its face value.
Bonds are redeemed at their face value at maturity.
Market rates of return and yields to maturity are compounded semiannually.
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