Bond. What is the yield to maturity of a $1000 par value bond with an
a. 10% semiannual coupon and 20 years to maturity and a $1,000 price?
b. 6.5% semiannual coupon and 13 years to maturity and a $890 price?
c. 7.5% annual coupon and 19 years to maturity and a $788 price?
d. 4.5% annual coupon and 7 years to maturity and a $800 price?
SOLUTION
a. 10% semiannual coupon and 20 years to maturity and a $1,000 price?
b. 6.5% semiannual coupon and 13 years to maturity and a $890 price?
c. 7.5% annual coupon and 19 years to maturity and a $788 price?
d. 4.5% annual coupon and 7 years to maturity and a $800 price?
SOLUTION
