30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.40%. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places. a. What is the yield to maturity if the bond is selling for $1,020?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.40%.
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.
a. What is the yield to maturity if the bond is selling for $1,020?
Answer is complete but not entirely correct.
Yield to maturity
4.125 %
b. What is the yield to maturity if the bond is selling for $1,000?
Answer is complete and correct.
8,400%
Yield to maturity
c. What is the yield to maturity if the bond is selling for $1,130?
Answer is complete but not entirely correct.
Yield to maturity
3.739
Transcribed Image Text:A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 8.40%. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places. a. What is the yield to maturity if the bond is selling for $1,020? Answer is complete but not entirely correct. Yield to maturity 4.125 % b. What is the yield to maturity if the bond is selling for $1,000? Answer is complete and correct. 8,400% Yield to maturity c. What is the yield to maturity if the bond is selling for $1,130? Answer is complete but not entirely correct. Yield to maturity 3.739
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