Question
The market price is $1,150 for a 19-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual
The market price is $1,150 for a 19-year bond ($1,000 par value) that pays 9 percent annual interest, but makes interest payments on a semiannual basis (4.5 percent semiannually). What is the bond's yield to maturity?
A bond's market price is $1,050. It has a $1,000 par value, will mature in 6 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 12 years? What if it matures in 3 years?
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