Question

Calculate the yield to maturity on the following bonds:

a. A 9.2 percent coupon (paid semiannually) bond, with a $1,000 face value and 17 years remaining to maturity. The bond is selling at $975.

b. An 8.2 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $905.

c. An 11.2 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,055. (For all requirements, do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161))

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Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 10 years remaining to maturity, and have a required rate of return of 12 percent

a. The bond has a 5.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

b. The bond has a 7.8 percent coupon rate. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

c. The bond has a 12 percent coupon rate. (Do not round intermediate calculations.)

Answer 1