Question: . Solve both of the bond problems below. For your work, show what you would key into the buttons on your financial calculator. (a) Suppose
. Solve both of the bond problems below. For your work, show what you would key into the buttons on your financial calculator.
(a) Suppose that a 6.250% semi-annual coupon paying bond is priced at 105.500 per 100 of par value. The tenor of the bond is 12 years. What is the yield to maturity?
(b) Suppose that a 5.525% semi-annual coupon paying bond is priced at 92.773 per 100 of par value. The tenor of the bond is 13 years. What is the yield to maturity?
Please show all the calculation and formulas.
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