A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 8%, and sells for $1,100.What is the yield to maturity if interest is paid once a year?Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places. What is the yield to maturity if interest is paid semiannually?Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.

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Answered: A bond with a face value of $1,000 has…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter27: The Basic Tools Of Finance

Section: Chapter Questions

Problem 3PA

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A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 8%, and sells for $1,100.

What is the yield to maturity if interest is paid once a year?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.
What is the yield to maturity if interest is paid semiannually?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.

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