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O The market price of a semi-annual pay bond is $971.90. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Show Hint

O The market price of a semi-annual pay bond is $971.90. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Show Hint

Essentials Of Investments
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
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112 O The market price of a semi-annual pay bond is $971.90. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Show Hint Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.82 %. If the yield to maturity for the bond is 8.39%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
Transcribed Image Text:112 O The market price of a semi-annual pay bond is $971.90. It has 14.00 years to maturity and a coupon rate of 8.00%. Par value is $1,000. What is the effective annual yield? Submit Answer format: Percentage Round to: 4 decimal places (Example: 9.2434%, % sign required. Will accept decimal format rounded to 6 decimal places (ex: 0.092434)) Show Hint Assume a par value of $1,000. Caspian Sea plans to issue a 11.00 year, semi-annual pay bond that has a coupon rate of 7.82 %. If the yield to maturity for the bond is 8.39%, what will the price of the bond be? Submit Answer format: Currency: Round to: 2 decimal places. Show Hint
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