Part 1:

Calculate the yield to maturity (i.e., YTM) for the following bond. The bond matures in 21 years, has a coupon rate of 3.7% with semi-annual payments . The par value of the bond is $1000, while the current market value equals $ 771.21. (Round to 100th of a percent and enter your answer as a percentage, e.g., 12.34 for 12.34%)

Answer:

Part 2:

What is the most we should pay for a bond with a par value of $1000, coupon rate of 7.3% paid semi-annually, and a remaining life of 8 years? The bond is rated BBB, with a yield to maturity of 9.6%(Round your answer to the nearest penny.)

Answer

Part 3:

Compute the current yield on a bond with a yield to maturity of 11.7%, a par value of $1000, a coupon rate of 2.3% paid semi-annually, a remaining life of 23 years? (Round to 100th of a percent and enter as a percentage, e.g. 12.34% as 12.34 and state as an annual rate .)

Answer