Calculate the yield to maturity on the following bonds. A 9.1 percent coupon (pa

Question

Calculate the yield to maturity on the following bonds.

A 9.1 percent coupon (paid semiannually) bond, with a $1,000 face value and 16 years remaining to maturity. The bond is selling at $980. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

An 8.1 percent coupon (paid quarterly) bond, with a $1,000 face value and 10 years remaining to maturity. The bond is selling at $910. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

An 11.1 percent coupon (paid annually) bond, with a $1,000 face value and 6 years remaining to maturity. The bond is selling at $1,060. (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161))

Calculate the yield to maturity on the following bonds.

Explanation / Answer

a Yield to maturity 9.343% =RATE(16*2,91/2,-980,1000)*2 b Yield to maturity 9.504% =RATE(10*4,81/4,-910,1000)*4 c Yield to maturity 9.733% =RATE(6,111,-1060,1000)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.