(Calculating yield to maturity) A bond's market price is $750. It has a $1000 par value, will mature in 8 years, and has a coupon interest rate of 9 percent annual interest but makes its interest payment semiannually. What is the bond's yield to maturity ? What happens to the bond's yield to maturity if the bond matures in years ? What if it matures in 4 years?
(Calculating yield to maturity) A bond's market price is $750. It has a $1000 par value, will mature in 8 years, and has a coupon interest rate of 9 percent annual interest but makes its interest payment semiannually. What is the bond's yield to maturity ? What happens to the bond's yield to maturity if the bond matures in years ? What if it matures in 4 years?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 11P
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(Calculating yield to maturity) A bond's market price is $750. It has a $1000 par value, will mature in 8 years, and has a coupon interest rate of 9 percent annual interest but makes its interest payment semiannually. What is the bond's yield to maturity ? What happens to the bond's yield to maturity if the bond matures in years ? What if it matures in 4 years?
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