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(Yield to maturity)A bond's market price is $900. It has a $1,000 par value, will mature in 8 years, and has a coupon interest rate
(Yield to maturity)A bond's market price is
$900.
It has a
$1,000
par value, will mature in
8
years, and has a coupon interest rate of
11
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
16
years? What if it matures in
4
years?
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