1. The Effective Annual Yield on an investment is 7%. What is the yield on a bond-equivalent basis?
2. A bond pays semiannually and has 10 years to maturity. The par value is $1000 and market price is $1106.59. Yield to maturity is 7%. What’s the bond coupon rate?
3. A 3-month loan has a holding period yield of 3%. What is the yield on a bond equivalent basis?