A 20-year maturity bond with face value of 1000 makes


A 20-year maturity bond with face value of $1,000 makes semiannual coupon payments and has a coupon rate of 6%.

a. What is the bond’s yield to maturity if the bond is selling for $990? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

  Annual yield to maturity             %

b. What is the bond’s yield to maturity if the bond is selling for $1,000? (Do not round intermediate calculations.)

  Annual yield to maturity             %

c. What is the bond’s yield to maturity if the bond is selling for $1,190? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

  Annual yield to maturity             %

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Financial Management: A 20-year maturity bond with face value of 1000 makes
Reference No:- TGS01262909

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