Author Question: A bond pays a 4% coupon (stated annually, paid semiannually). Its price is currently $890 and its ... (Read 50 times)

yagurl · **on:** Aug 7, 2023

Question 1

A bond is currently priced at $910 on a par value of $1,000. Its term to maturity is 7 years and its coupon rate is 12% (stated annually, paid annually). If you buy the bond, and hold it to maturity, what would be the yield to maturity?

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12.85%

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13.30%

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13.71%

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14.11%

Question 2

A bond pays a 4% coupon (stated annually, paid semiannually). Its price is currently $890 and its term to maturity is 11 years. What is the expected yield for an investor who buys the bond and holds it to maturity?

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4.41%

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4.75%

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5.33%

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5.80%

hvhf4k+549qz8f218jyo@shar · **Reply #1 on:** Aug 7, 2023

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