Bonds of the Government of Saint Vincent and the Grenadines pay semiannual interest of $75. They mature in 10 years and have a face value of $1,000. The market interest rate is 7%. What is the market value of government bonds?

Citicorp issued 10-year bonds 2 years ago at a coupon rate of 8 percent. The bonds make semi-annual payments. If these bonds are currently selling at 110 percent of face value, what is the yield to maturity?

Answer rating: 100% (QA)

For the first question we can use the present value formula to calculate the market value of governm... View the full answer