Question: Problem 2 : Yield to Maturity A 1 0 - year maturity bond with par value $ 1 , 0 0 0 makes semiannual coupon

Problem 2: Yield to Maturity
A 10-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 6%.(Please write the mathematical formula by which you will get a solution of YTM but you can solve it by using a financial calculator or Excel Calculator.)
Required:
a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $980.
b. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,000.
c. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $1,050.
d. Which of the above three bonds (in (a),(b) and (c)) is the most profitable?
Problem 2: Yield to Maturity A 10-year maturity bond with par

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