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Please explain how the information in the first table was used to get the answers for the second table in detail. 1. Bonds - April
Please explain how the information in the first table was used to get the answers for the second table in detail.
1. Bonds - April 2019 Below is information about various bonds as of April 4, 2019, retrieved from www.schwab.com. The par value of the bonds is $1,000 Yield to S&P Rat- Semi- Issuer Years to Coupon Maturity |(%) Price Name Maturity ing annual? 2.400% $990.70 Amazon 3.875 - Yes Macy's 6.900% 10.000 - 5.925% Yes Use this information to complete the table below, and then answer the questions that follow What is the yield to maturity for Amazon bonds? YTM /Price Calculation Issuer Name PV PMT FV 1.327% -$990.70 $12.00 $1,000 Amazon 7.75 $1,000 2.963% -$1,072.76 $34.50 Macy's 20.00 Amazon YTM = |*2 2.654% Solving for I gives you the semiannual interest rate. Multiply I by 2 to get YTM When solving for the price of a semiannual bond, you need to divide I by 2 to get the semiannual interest rateStep by Step Solution
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