Question
(Yield to maturity)A bond's market price is. $1,125. It has a. $1,000 par value, will mature in 14 years, and has a coupon interest rate
(Yield to maturity)A bond's market price is. $1,125.
It has a. $1,000
par value, will mature in 14 years, and has a coupon interest rate of 9 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 28 years? What if it matures in 7 years?
a.The bond's yield to maturity if it matures in 14
years is ____%
(Round to two decimal places.)
P9-8 (similar to) Question Help (Yield to maturity) A bond's market price is $1,125. It has a $1,000 par value, will mature in 14 years, and has a coupon interest rate of 9 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 28 years? What if it matures in 7 years? a. The bond's yield to maturity if it matures in 14 years is %. (Round to two decimal places.)Step by Step Solution
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Managerial Finance
Authors: John Fred Weston, Eugene F. Brigham, John Boyle, Robin John Limmack
1st Edition
0039101975, 978-0039101978
