Question
In: Finance
A bond's market price is $1,125. It has a $1,000 par value, will mature in 8...
A bond's market price is $1,125. It has a $1,000 par value, will mature in 8 years, and has a coupon interest rate of 8 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?
a. The bond's yield to maturity if it matures in 8 years is (?) % (Round to two decimal places.)
b. The bond's yield to maturity if it matures in 16 years is (?)%.(Round to two decimal places.)
c. The bond's yield to maturity if it matures in 4 years is (?)% (Round to two decimal places.)
Solutions
jeff jeffy answered 2 years agoRelated Solutions
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(Yield to maturity) A bond's market price is $900. It has a $1,000 par value, will...
(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 8 percent annual interest, but makes
its interest payments semiannually.
What is the bond's yield to maturity? % (Round to two
decimal places.)
What happens to the bond's yield to maturity if the bond
matures in 16 years? % (Round to two decimal places.)
What if it matures in 4 years?...
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compounding where appropriate).
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that it is currently being priced in the market at $1,250. Which of
these 3 yields is the highest? Which is the lowest? Which yield
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A bond's market price is $1 comma 150. It has a $1 comma 000 par value,...
A bond's market price is $1 comma 150. It has a $1 comma 000
par value, will mature in 8 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 16 years?
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Coupon payments are made semiannually (so use semiannual
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