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assuming wxyz are numbers 2693
A$100*WXYZ bond with coupon rate of (W+X+Y+Z)/4% is offered for sale for 125 WXYZ $. Compounding is semiannual. Find the foll
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Answer #1

a.

Semi-Annual Payment = 0.04(100)/2 = $2

b.

Current Yield = 2/125 = 1.60%

c.

Calculating YTM,

I = [FV = 100, PV = 125, PMT = 2, T = 10]

I = 1.76%

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