The Pioneer Petroleum Corporation has a bond outstanding with an $80 annual interest payment, a market price of $800, and a maturity date in four years. Assume the par value of the bond is $1,000. Find the following: Note: Use the approximation formula to compute the approximate yield to maturity and use the calculator method to compute the exact yleld to maturity. Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places. a. Coupon rate b. Current yield e-1. Approximate yield to maturity e-2. Exact yield to maturity % % % %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Pioneer Petroleum Corporation has a bond outstanding with an $80 annual interest payment, a market price of $800, and a
maturity date in four years. Assume the par value of the bond is $1,000.
Find the following:
Note: Use the approximation formula to compute the approximate yleld to maturity and use the calculator method to compute the
exact yleld to maturity. Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places.
a. Coupon rate
b. Current yield
e-1. Approximate yield to maturity
c-2. Exact yield to maturity
%
%
Transcribed Image Text:The Pioneer Petroleum Corporation has a bond outstanding with an $80 annual interest payment, a market price of $800, and a maturity date in four years. Assume the par value of the bond is $1,000. Find the following: Note: Use the approximation formula to compute the approximate yleld to maturity and use the calculator method to compute the exact yleld to maturity. Do not round Intermediate calculations. Input your answers as a percent rounded to 2 decimal places. a. Coupon rate b. Current yield e-1. Approximate yield to maturity c-2. Exact yield to maturity % %
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