annual coupon = 6.4
price = 90
(1) current yield = annual coupon/ price = 6.4/90 = 0.0711 = 7.11%
YTM = 7.42%, periods per year = 2
(2) EAR = (1 + YTM/2)^2 - 1 = (1+ 0.0742/2)^2 - 1 = 0.0755 = 7.55%
Answer : 7.11%, 7.55% [Thumbs up please]
Question 6 2 pts What is the current yield and the effective annual yield of the...
What is the yield to maturity for the company bond maturing in 20 years, paying semi-annual coupons with a coupon rate of 8% and a market price of $1.110.24? 73 6.97 6.40 6,41 7.11% Question 22 1 pts
25-year bond has a $1,000 face value, a 10% yield to maturity, and an 8% annual coupon rate, paid semi-annually. What is the market value of the bond? Suppose a bond with a 10% coupon rate and semiannual coupons, has a face value of $1000, 20 years to maturity and is selling for $1197.93. What’s the YTM?
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