A bond\'s market price is $900. It has a $1.000 par value, will mature in 12 yea

Q: A bond's market price is $900. It has a $1.000 par value, will mature in 12 yea

ANSWER: The best guess for the population mean is 48.5 hours per week, and about 95% of all employees are within 2 standard deviations of this, where we are almost sure (99% sure) that this standard deviation is between 5.9 and 10.1. But even if the standard deviation is only 5.9, then 48.5 standard deviations will produce the range 36.7 to 60.3. Maybe management should be concerned.

ID: 2711065 • Letter: A

Question

A bond's market price is $900. It has a $1.000 par value, will mature in 12 years, and has coupon interest rate of 9 percent annual interest, but makes its interst payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 24 years? What if it matures in 6 years?
a. The bond's yield to maturity if it matures in 12 years is %?
b. The bond's yield to maturity if it matures in 24 years is %?
c. The bond's yield to maturity if it matures in 6 years is %?

Explanation / Answer

ANSWER:

The best guess for the population mean is 48.5 hours per week, and about 95% of

all employees are within 2 standard deviations of this, where we are almost sure (99% sure) that this standard deviation is between 5.9 and 10.1. But even if the standard deviation is only 5.9, then 48.5 standard deviations will produce the range 36.7 to 60.3. Maybe management should be concerned.

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A bond\'s value is equal to its _____. Answer FV ( future interest cash flows an

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A bond\'s market price is $900. It has a $1.000 par value, will mature in 12 yea

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