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A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon...

A 10-year maturity bond with par value of $1,000 makes annual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices. (Round your answers to 2 decimal places.)

Bond prices: 950, 1000, 1050

What are the Bond Equivalent Annual Yield to Maturity and  Effective Annual Yield to Maturity

Solutions

Expert Solution

effective annual yield is the same as equivalent rate as the coupon is paid annually and compounding frequency is 1.

calc:

jeff jeffy answered 2 years ago
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