Question

7.) The yield to maturity of a $ 1,000 bond with a 6.7 % coupon​ rate, semiannual​ coupons, and two years to maturity is 7.7 % ​APR, compounded semiannually. What is its​ price?
The price of the bond is ​$ __

8.) Suppose a​ ten-year, $ 1 comma 000 bond with an 8.4 % coupon rate and semiannual coupons is trading for $ 1 comma 035.89.
a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?
b. If the​ bond's yield to maturity changes to 9.4 % ​APR, what will be the​ bond's price?
a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?
The​ bond's yield to maturity is __%

Answer 1

в с D 1 Question 7 2. 3 Par Value 4 Coupon rate 5 YTM 6 Years to Maturity 7 Frequency $1,000 6.70% 7.70% 2 semi-annual 9 Price $981.79 10 $1,000 8.40% $1,035.89 11 Question 8 12 Par value 13 Coupon Rate 14 Current Price 15 Years to Maturity 16 Frequency 17 18 YTM 2 semi-annual 7.87% 19 20 New YTM 21 New Price 9.40% $936.07 22

А 1 Question 7 3 Par Value 4 Coupon rate 5 YTM 6 Years to Maturity | 7 Frequency 1000 0.067 0.077 semi-annual --PV(B5/B7,16*B7,B4*B3/B7,B3) 9 Price 10 11 Question 8 12 Par value 13 Coupon Rate 14 Current Price 15 Years to Maturity 16 Frequency 1000 0.084 1035.89 10 2 semi-annual 17 YTM =B16*RATE(B15*B16,B13*B12/B16,-B14,B12) 20 New YTM 21 New Price 22 0.094 --PV(B20/B16,B15*B16,813*B12/B16,B12)