Question: Q18 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! Suppose a ten-year, $1,000 bond with an 8% coupon rate and semi-annual payments is trading

Q18 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!!

Q18 PLEASE ANSWER CORRECTLY AND PROMPTLY!! PLEASE SHOW ALL WORK!! Suppose a

Suppose a ten-year, $1,000 bond with an 8% coupon rate and semi-annual payments is trading for a price of $1,034.74. Which of the following is the correct formula that you would use to find the yield to maturity (YTM) of this particular bond? In other words, which of the following versions has everything you need to figure out this particular value, the YTM on this specific bond at this price? A. $1,034.74=r80(1(1+r)201)+(1+r)201,000 B. $1,034.74=r40(1(1+r)201)+(1+r)201,000 C. r40(1(1+r)201)+(1+r)201,000 D. $1,034.74=r80(1(1+r)101)+(1+r)101,000 E. Bond value =rC(1(1+r)n1)+(1+r)nPar F. All of these answers are equally good for finding the yield, r, in this specific case for this bond

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