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A. A zero-coupon bond with face value $1,000 and maturity of five years sells for...

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Accounting

A. A zero-coupon bond with face value $1,000 and maturity of five years sells for $741.22.

What is it's yield to maturity and what would its yield to maturity be if the price falls to 725?

B.You buy a six-year bond that has a 4.75% current yield and a 4.75% coupon (paid annually). In one year, promised yields to maturity have risen to 5.75%. What is your holding-period return? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

C.Treasury bonds paying an 10.00% coupon rate with semiannual payments currently sell at par value. What coupon rate would they have to pay in order to sell at par if they paid their coupons annually? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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