Calculate the value of a bond that matures in 14 years and has a $ 1,000 par value. The annual coupon interest rate is 15 percent and the? market's required yield to maturity on a? comparable-risk bond is 16 percent.
The market price is ?$700 for a 15 ?-year bond ?($1000 par? value) that pays 8 percent annual? interest, but makes interest payments on a semiannual basis ?(4 percent? semiannually). What is the? bond's yield to? maturity?