A two-year bond with par value $1,000 making annual coupon payments of $91 is priced at $1,000. a. What is the yield to
Posted: Sun May 29, 2022 4:43 pm
A two-year bond with par value $1,000 making annual coupon
payments of $91 is priced at $1,000.
a. What is the yield to maturity of the
bond? (Round your answer to 1 decimal
place.)
b. What will be the realized compound return
if the one-year interest rate next year turns out to be (a) 7.1%,
(b) 9.1%, (c) 11.1%? (Do not round intermediate
calculations. Round your answers to 2 decimal
places.)
payments of $91 is priced at $1,000.
a. What is the yield to maturity of the
bond? (Round your answer to 1 decimal
place.)
b. What will be the realized compound return
if the one-year interest rate next year turns out to be (a) 7.1%,
(b) 9.1%, (c) 11.1%? (Do not round intermediate
calculations. Round your answers to 2 decimal
places.)