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 maturity4.125 %b. What is the yield to maturity if the bond is selling for $1,000?Answer is complete and correct.8,400%Yield to maturityc. What is the yield to maturity if the bond is selling for $1,130?Answer is complete but not entirely correct.Yield to maturity3.739

Yield to maturity can be calculated by following function in excel=RATE (nper, pmt, pv, [fv],…

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?

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

Section: Chapter Questions

Problem 1PS

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Question

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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