1. The market price of a semi-annual pay bond is $957.95. It has 15.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the yield to maturity?
2. The market price of a semi-annual pay bond is $966.43. It has 19.00 years to maturity and a coupon rate of 6.00%. Par value is $1,000. What is the effective annual yield?

Answer rating: 100% (QA)

To calculate the yield to maturity YTM and the effective annual yield EAY of the bonds we can use th... View the full answer