Question: 1 7 . A 2 0 - year maturity bond with par value $ 1 , 0 0 0 makes semiannual coupon payments at a

17. A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is:
a. $950
b. $1,000
c. $1,050 Using the same data but now assumee that the bond make its coupon payments annuals. Why are the yields you compute lower in this case?

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