What is the yield-to-maturity of a 4-year, 1000 USD 10% coupon bond that makes semi-annual coupon payments? The zero rates are Months Period Zero Rate 6 12 18 24 30 36 42 48 1 2 3 4 5 6 7 8 0.20% 0.30% 0.50% 0.80% 1.20% 1.70% 2.30% 3.00%

What is the yield-to-maturity of a 4-year, 1000 USD 10% coupon bond that makes semi-annual coupon payments? The zero rates are Months Period Zero Rate 6 12 18 24 30 36 42 48 1 2 3 4 5 6 7 8 0.20% 0.30% 0.50% 0.80% 1.20% 1.70% 2.30% 3.00%

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

What is the
yield-to-maturity of a 4-year,
1000 USD 10% coupon bond that makes
semi-annual coupon payments? The zero
rates are
Months
6
12
18
24
30
36
42
48
Period Zero Rate
1
2
3
4
5
6
7
CO
0.20%
0.30%
0.50%
0.80%
1.20%
1.70%
2.30%
3.00%

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