Jill wants to invest in a four-year bond that pays a coupon of 11 percent annually. The bonds are selling at $962.13 today and have a face value of $1,000. If she buys this bond and holds it to maturity, what would be the yield? (USE EXCEL or FINANCIAL CALCULATOR. Round to the closest answer.)
Coupon = 0.11 * 1000 = 110
Yield to maturity = 12.25%
Keys to use in a financial calculator: FV 1000, PV -962.13, N 4, PMT 110, CPT I/Y
Jill wants to invest in a four-year bond that pays a coupon of 11 percent annually....
Question 6 Jack is planning to invest in a seven-year bond that pays annual coupons at a rate of 6 percent. It is currently selling at $927.23. The face value is $1,000. The current market yield on such bonds is closest to: (USE EXCEL or FINANCIAL CALCULATOR.) Select one: A. 10.4% B. 9.5% C. 8.4% D. 7.4%
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