Question

Debra King wants to invest in four-year bonds that are currently priced at $898.49. These bonds...

Debra King wants to invest in four-year bonds that are currently priced at $898.49. These bonds have a coupon rate of 6.0 percent and make semiannual coupon payments. What is the current market yield on this bond? (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)

Current market yield %

please show steps

0 0
Add a comment Improve this question Transcribed image text
Answer #1

6.00% COUPON RATE YEARS TO MATURITY 4 8 (years to maturity x 2) NPER 30 (face value x coupon rate)/2 PMT FACE VALUE $1,000.00

Add a comment
Know the answer?
Add Answer to:
Debra King wants to invest in four-year bonds that are currently priced at $898.49. These bonds...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT