Question: please help Bonds: Calculating YTM Practice Bonds are legally-binding debt instruments that obligate the bond issuer to make interest payments to the bond holder and


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Bonds: Calculating YTM Practice Bonds are legally-binding debt instruments that obligate the bond issuer to make interest payments to the bond holder and to repay the principle amount at the bonds maturity. All bonds have a face value of $1,000 and most bonds make semiannual payments. In this class, we will assume that all bonds make semi-annual payments, unless otherwise specied. The coupon rate expresses the annual coupon payment as a percentage of parvalue (51000). To compute the semiannual coupon payment of a bond with a 7% coupon you multiply 7% by $1000, which equals 370: this is the annual coupon. Divide this by 2 to get the semi-annual coupon of $35. Yields are always expressed on an annual basis. When calculatingyields on semi-annual bonds, your calculation result Will be a semi-annual yield. Multiply this semi-annual yield by 2 to annualize it. A B C Coupon Rate 5% 3.50% 4.13% Price Quote 115.25 98.68 99.11 PMTs to Maturity (N) 12 24 15 Assume semi-annual payments Enter your answers as percentages, but enter only numbers and decimals in your response. Round to 4 decimal places. Homework . Answered What is the yield to maturity of bond A? (Answer as a percent. Enter only numbers and decimals in your response. Round to 4 decimal places.)
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