Question: YIELD TO MATURITY ANNUALLY AND SEMIANNUALLY A: Yield to maturity. What is the yield of each of the following bonds if interest (coupon) is paid
YIELD TO MATURITY ANNUALLY AND SEMIANNUALLY
A: Yield to maturity. What is the yield of each of the following bonds if interest (coupon) is paid annually?
| Par Value | Coupon Rate | Years to Maturity | Yield to Maturity | Price |
| $1,000 | 6% | 15 | ? | $1,000 |
| $5,000 | 11% | 5 | ? | $5,380 |
| $5,000 | 9% | 5 | ? | $5,190 |
| $5,000 | 12% | 15 | ? | $7,200 |
B: Yield to maturity. What is the yield of each of the following bonds if interest (coupon) is paid semiannually?
| Par Value | Coupon Rate | Years to Maturity | Yield to Maturity | Price |
| $5,000 | 5% | 10 | ? | $2,990 |
| $5,000 | 9% | 10 | ? | $4,400 |
| $1,000 | 8% | 5 | ? | $1,100 |
| $1,000 | 7% | 10 | ? | $1,000 |
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