A 30-year maturity bond with face value of $1,000 makes semiannual coupon paymen

Question

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 10%.

What is the bond’s yield to maturity if the bond is selling for $930? Enter annual yield to maturity as your answer. (Do not round intermediate calculations. Round your answer to 3 decimal places.)

What is the bond’s yield to maturity if the bond is selling for $1,130? Enter annual yield to maturity as your answer. (Do not round intermediate calculations. Round your answer to 3 decimal places.)

A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 10%.

Explanation / Answer

1. 5.39%

2. 5%

3. 4.38%

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