Question

2. A bond has a $1,000 par value, semiannual interest payments of $45, and a current market value of $1,045. The bonds mature in 11.5 years. The coupon rate is ________%, the current yield is ________%, and the yield to maturity is ________%.

A. 9.00; 8.61; 8.38

B. 9.00; 8.59; 8.33

C.9.00; 8.72; 8.64

D. 9.50; 8.87; 8.73

Answer 1

Ans is A. 9.00;8.61; 8.38

Calculations-

Here,
Fv is the Future value of the bond
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic coupon payments
Pv is the current rate of bond
type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

Please upvote if the ans is helpful.In case of doubt,do comment.thanks.