Question: Problem 6-17 Bond Returns (LO2, 3) A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7
Problem 6-17 Bond Returns (LO2, 3) A bond with a face value of $1,000 has 10 years until maturity, carries a coupon rate of 7 annu .1%, and sells for $1,190. Interest is paid a. if the bond has a yield to maturity of 10.9% 1 year from now, what will its calculations. Round your anser to nearest whole number.) price be at that time? (Do not round inter 271 b. What will be the annual rate of return on the bond? (Do not round intermediate calculations. Enter your answer as a rounded to 2 decimal places. Negative amount should be indicated by a minus sign.) percent e. Now assume that Interest is paid semiannually. What will be the annual rate of return on the bond? O Slightly greater than your part b answer O Slightly less than your part b answer (Do d. If the in not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Negative amount should be
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