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You have bought a 20-year 5% coupon annual-pay bond at a price of 107.5%. What is the yield-to-maturity? O 2.61296 O 3.815% 04.119% O 4.952%
You have bought a 20-year 5% coupon annual-pay bond at a price of 107.5%. What is the yield-to-maturity? O 2.61296 O 3.815% 04.119% O 4.952% O None of the above QUESTION 6 You have bought a 20-year 5% coupon annual-pay bond at a price of 107.5%. If the yield increases by 125 basis points on your bond over the next year, what are your holding period returns for that year? Remember to include both the coupon and the change in price in your calculations. 0 -1.13% 0 -0.4896 O 1.3396 0 4.8296 QUESTION 7 What is the value of a perpetuity starting in 12 years paying $300/year if the discount rate is 9% per year? O 1185.16 O 1291.78 O 1408.04 O 1512.62 O None of the above
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