Yield to maturity. What is theyield of each of the following bonds,,if interest (coupon) is paidsemiannually? DefinitionYield to maturity (YTM) is the return the bond holder receives on the bond if held tomaturity. Data Table(Click on the following icon e in order to copy its contents into a spreadsheet.)Years toYield toPar ValueCoupon RateMaturityMaturityPrice$1,000.006%?$910.00$5,000.005%10?$3,200.00$5,000.008%20?$6,150.00$1,000.0012%30$1,300.00

Given data; Par value = $ 1000 coupon rate = 6% years to maturity = 5 price of bond = 910 frequency…

(Click on the following icon e in order to copy its contents into a spreadsheet.) Years to Yield to Coupon Rate 6% Par Value Maturity Maturity Price $1,000.00 $5,000.00 $5,000.00 $1,000.00 5 ? $910.00 5% 10 ? $3,200.00 8% 20 $6,150.00 12% 30 $1,300.00

(Click on the following icon e in order to copy its contents into a spreadsheet.) Years to Yield to Coupon Rate 6% Par Value Maturity Maturity Price $1,000.00 $5,000.00 $5,000.00 $1,000.00 5 ? $910.00 5% 10 ? $3,200.00 8% 20 $6,150.00 12% 30 $1,300.00

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter10: Financial Statements And Reports

Section: Chapter Questions

Problem 3.3C

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Concept explainers

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.

Question

Yield to maturity. What is the

yield

of each of the following bonds,

if interest (coupon) is paid

semiannually?

Definition
Yield to maturity (YTM) is the return the bond holder receives on the bond if held to
maturity.

Data Table
(Click on the following icon e in order to copy its contents into a spreadsheet.)
Years to
Yield to
Par Value
Coupon Rate
Maturity
Maturity
Price
$1,000.00
6%
?
$910.00
$5,000.00
5%
10
?
$3,200.00
$5,000.00
8%
20
?
$6,150.00
$1,000.00
12%
30
$1,300.00

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