The market price of a semi-annual pay bond is $960.59. It has 11.00 years to maturity...
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The market price of a semi-annual pay bond is $960.59. It has 11.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0 092434)) Show Hint The market price of a semi-annual pay bond is $960.59. It has 11.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0 092434)) Show Hint
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Answer rating: 100% (QA)
To calculate the effective annual yield of a bond we can use the formula Effective Annual Yield 1 Yi... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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