(Yield to​ maturity)  ​Fitzgerald's 15​-year bonds pay 8 percent interest annually on a ​$1,000 par value. If the bonds sell at $875​, what is the​ bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? Explain the difference. Question content area bottom Part 1 a. The​ bond's yield to maturity if the bond pays interest annually is enter your response here​%. ​(Round to three decimal​ places.)

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter4: Bond Valuation
Section: Chapter Questions
Problem 10P
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​(Yield to​ maturity)  ​Fitzgerald's
15​-year
bonds pay
8
percent interest annually on a
​$1,000
par value. If the bonds sell at
$875​,
what is the​ bond's yield to​ maturity? What would be the yield to maturity if the bonds paid interest​ semiannually? Explain the difference.
 
 
 

Question content area bottom

Part 1
a. The​ bond's yield to maturity if the bond pays interest annually is
enter your response here​%.
​(Round to three decimal​ places.)
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