A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000. a. What is the yield to

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000. a. What is the yield to

Post by answerhappygod »

A Two Year Bond With Par Value 1 000 Making Annual Coupon Payments Of 90 Is Priced At 1 000 A What Is The Yield To 1
A Two Year Bond With Par Value 1 000 Making Annual Coupon Payments Of 90 Is Priced At 1 000 A What Is The Yield To 1 (15.13 KiB) Viewed 11 times
A two-year bond with par value $1,000 making annual coupon payments of $90 is priced at $1,000. a. What is the yield to maturity of the bond? (Round your answer to 1 decimal pace.) Yield to maturity 90.0% b. What will be the realized compound return if the one-year interest rate next year turns out to be (a) 7.0%, (b) 9.0 %. (c) 11.0 % ? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Interest Rate Realized Compound Return 70% 90 % 11.0%
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply