There is a bond that has a quoted price of 105.039 and a par value of $2,000. The coupon rate is 6.87 percent and the bond matures in 25 years. If the bond makes semiannual coupon payments, what is the YTM of the bond? 4.85% 3.14% 3.23% 5.81% 6.46%
There is a bond that has a quoted price of 105.039 and a par value of $2,000. The coupon rate is 6.87 percent and the bond matures in 25 years. If the bond makes semiannual coupon payments, what is the YTM of the bond? 4.85% 3.14% 3.23% 5.81% 6.46%
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 14P: Current Yield with Semiannual Payments
A bond that matures in 7 years sells for $1,020. The bond has...
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![There is a bond that has a quoted price of 105.039 and a par value of $2,000. The
coupon rate is 6.87 percent and the bond matures in 25 years. If the bond makes
semiannual coupon payments, what is the YTM of the bond?
4.85 % 3.14% 3.23% 5.81 % 6.46%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2e54fb8c-075a-49b4-8187-95e6d3761142%2Ff3f0e10c-e1cc-4090-b9cc-7f2734c81ea8%2Fwo3d6sj_processed.png&w=3840&q=75)
Transcribed Image Text:There is a bond that has a quoted price of 105.039 and a par value of $2,000. The
coupon rate is 6.87 percent and the bond matures in 25 years. If the bond makes
semiannual coupon payments, what is the YTM of the bond?
4.85 % 3.14% 3.23% 5.81 % 6.46%
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