# Question

(a) Show the cash flows for the following four bonds, each of which has a par value of $1,000 and pays interest semiannually.

(b) Calculate the yield to maturity for the four bonds.

Bond

Coupon Rate(%)

Number of Yearsto Maturity

Price

W

7

5

$884.20

X

8

7

$948.90

Y

9

4

$967.70

Z

0

10

$456.39

(b) Calculate the yield to maturity for the four bonds.

Bond

Coupon Rate(%)

Number of Yearsto Maturity

Price

W

7

5

$884.20

X

8

7

$948.90

Y

9

4

$967.70

Z

0

10

$456.39

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