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Kimberly Young is planning to buy 10 -year zero coupon bonds issued by the U.S. Treasury. If these bonds have a face value of $1,000
Kimberly Young is planning to buy 10 -year zero coupon bonds issued by the U.S. Treasury. If these bonds have a face value of $1,000 and are currently selling at $404.55, what is the effective annual yield? Assume that interest compounds semiannually on similar coupon paying bonds. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25\%.) Four years ago, Sharon Stills bought six-year, 5.3 percent coupon bonds issued by the Carla Vista Corp. for $945.24. If she sells these bonds at the current price of $893.64, what will be her realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. Assume face value is \$1,000. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25\%.)
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