Five years ago, SmartRV Corp. (SRV) sold Bond A to investors at par. Bond A has a face value of $1,000, semi-annual coupon payments of $50 (i.e., an annual coupon rate of 10%), and a time-to-maturity of eight years. Today (i.e., after the 10th coupon payment) Bond A's yield-to-maturity is 8% (APR, semi-annually compounded).

What was the yield-to-maturity (APR, semi-annually compounded) of Bond A at issuance (i.e., five years ago)?

What's the price of Bond A today?

Answer rating: 100% (QA)

Problem 1 YieldtoMaturity at Issuance To find the yieldtomaturity at issuance we need to calculate t... View the full answer