Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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A 15-year maturity bond with face value of $1,000 makes semiannual coupon payments
and has a coupon rate of 12%.
a. What is the bond's yield to maturity if the bond is selling for $940? Enter annual yield
to maturity as your answer. (Do not round intermediate calculations. Round your
answer to 3 decimal places.)
Annual yield to
maturity
b. What is the bond's yield to maturity if the bond is selling for $1,000? Enter annual yield
to maturity as your answer. (Do not round intermediate calculations.)
Annual yield to
maturity
c. What is the bond's yield to maturity if the bond is selling for $1,140? Enter annual yield
to maturity as your answer. (Do not round intermediate calculations. Round your
answer to 3 decimal places.)
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Transcribed Image Text:A 15-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 12%. a. What is the bond's yield to maturity if the bond is selling for $940? Enter annual yield to maturity as your answer. (Do not round intermediate calculations. Round your answer to 3 decimal places.) Annual yield to maturity b. What is the bond's yield to maturity if the bond is selling for $1,000? Enter annual yield to maturity as your answer. (Do not round intermediate calculations.) Annual yield to maturity c. What is the bond's yield to maturity if the bond is selling for $1,140? Enter annual yield to maturity as your answer. (Do not round intermediate calculations. Round your answer to 3 decimal places.)
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