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What is the yield-to-maturity of a 3-year bond with a coupon rate of 6% and face value of $100? Assume the bond is currently trading at a price of $100, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205 % , then please write down 0.0321.

What is the yield-to-maturity of a 3-year bond with a coupon rate of 6% and face value of $100? Assume the bond is currently trading at a price of $100, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205 % , then please write down 0.0321.

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
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What is the yield-to-maturity of a 3-year bond with a coupon rate of 6% and face value of $100? Assume the bond is currently trading at a price of $100, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
Transcribed Image Text:What is the yield-to-maturity of a 3-year bond with a coupon rate of 6% and face value of $100? Assume the bond is currently trading at a price of $100, and that coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
What is the price of a 3-year bond with a 8% coupon rate and face value of $100? The bond is trading at a yield of 7%. Coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to the nearest cent (2 decimal places).
Transcribed Image Text:What is the price of a 3-year bond with a 8% coupon rate and face value of $100? The bond is trading at a yield of 7%. Coupons are paid semi-annually. Assume semi-annual compounding. Round your answer to the nearest cent (2 decimal places).
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