1) Westpac Banking Corporation has a 3-year bond outstanding that pays a 7.25 per cent coupon and is currently priced at $913.88. What is the yield to maturity of this bond? Assume annual coupon payments and a face value of $1000. 

 2) Wesfarmers Ltd has a 10-year bond that is priced at $1100.00. It has a coupon of 8 per cent paid semiannually and a face value of $1000. What is the yield to maturity on this bond? What is the effective annual yield?

Answer rating: 100% (QA)

1 To calculate the yield to maturity YTM of the Westpac Banking Corporation bond we can use the pres... View the full answer