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A 30-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a...

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Finance

A 30-year maturity bond with face value of $1,000 makessemiannual coupon payments and has a coupon rate of 8.0%.(Do not round intermediate calculations. Enter your answersas a percent rounded to 3 decimal places.)

a.

What is the yield to maturity if the bond is selling for$930?

What is the yield to maturity if the bond is selling for$1,135?

Answer & Explanation Solved by verified expert
4.2 Ratings (816 Votes)
aThe Yield to Maturity of the Bond if the bond is selling for 930 The Yield to maturity of YTM of the Bond is calculated using financial calculator as follows Normally the YTM is calculated either using EXCEL Functions or by using Financial Calculator Variables Financial Calculator    See Answer
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Transcribed Image Text

A 30-year maturity bond with face value of $1,000 makessemiannual coupon payments and has a coupon rate of 8.0%.(Do not round intermediate calculations. Enter your answersas a percent rounded to 3 decimal places.)a.What is the yield to maturity if the bond is selling for$930?What is the yield to maturity if the bond is selling for$1,135?

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