A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 8%, and sells for $1,100.What is the yield to maturity if interest is paid once a year?Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places. What is the yield to maturity if interest is paid semiannually?Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.

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Answered: A bond with a face value of $1,000 has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A bond with a face value of $1,000 has 8 years until maturity, has a coupon rate of 8%, and sells for $1,100.

What is the yield to maturity if interest is paid once a year?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.
What is the yield to maturity if interest is paid semiannually?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 4 decimal places.

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