A two-year bond provides a coupon of 6% paid semiannually and has a cash price of...

 

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A two-year bond provides a coupon of 6% paid semiannually and has a cash price of 102. What is the bond's yield? (Hint: Goal Seek) Report your answer in decimal format rounded to four decimal places. (Note this problem has only one numerical version, so each wrong attempt leads to a 25% grading penalty.) Answer: Check Suppose that the 6-month, 12-month, 18-month, and 24-month zero rates are 1.47 %, 1.79 %, 2.02 %, and 2.3% respectively. What is the two-year par yield? (Hint: Use the equation on p.89) Report your answer in percentage terms rounded to four decimal places. For example.123456 should be entered as 12.3456 without the percentage sign. Answer: Check A two-year bond provides a coupon of 6% paid semiannually and has a cash price of 102. What is the bond's yield? (Hint: Goal Seek) Report your answer in decimal format rounded to four decimal places. (Note this problem has only one numerical version, so each wrong attempt leads to a 25% grading penalty.) Answer: Check Suppose that the 6-month, 12-month, 18-month, and 24-month zero rates are 1.47 %, 1.79 %, 2.02 %, and 2.3% respectively. What is the two-year par yield? (Hint: Use the equation on p.89) Report your answer in percentage terms rounded to four decimal places. For example.123456 should be entered as 12.3456 without the percentage sign. Answer: Check

Answer rating: 100% (QA)

To find the bonds yield we can use the Excel function RATE or the Goal Seek tool Heres how to use Go... View the full answer