1 answer

A 4-year maturity bond with a 14% coupon rate can be bought for $1,200, what is...

Question:

A 4-year maturity bond with a 14% coupon rate can be bought for $1,200, what is the yield to maturity if the coupon is paid annually? What if it is paid semiannu- ally? You will need a spreadsheet or a financial calculator to answer this question.

A 4-year maturity bond with a 14% coupon rate can be bought for $1,200, what is the yield to maturity if the coupon is paid annually? What if it is paid semiannu- ally? You will need a spreadsheet or a financial calculator to answer this question.

Answers

Annual compounding YTM:

Semi-annual compounding YTM:

C10 A Face value (FV) 1,000 14.00% 2 70.00 1,200 2 B Coupon rate 4 AxB-CInterest per period (PMT) 61 DİNumber of years to mat

.

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