Answered step by step
Verified Expert Solution
Question
1 Approved Answer
why is the price difference from par not (1197.93-1000) ? YTM with Semiannual Coupons . Suppose a bond with a 10 percent coupon rate and
why is the price difference from par not (1197.93-1000) ?
YTM with Semiannual Coupons . Suppose a bond with a 10 percent coupon rate and semiannual coupons, has a face value of $1000,20 years to maturity, and is selling for $1,197.93. [Hint: Use approximate YTM + /- 1\%] - Is the YTM more or ss than 10 percent? - What is the semiannual coupon payment? - How many periods are there? Approximate Y TM =21.197.93+1000100+2010001,197.93=0.0820=8.20%;2TM=4.1% Approximate YTM1%=7.20%;2VTM=3.6% Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started