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?(Yield to? maturity) A? bond's market price is ?$900. It has a ?$1,000 par? value, will...

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Finance

?(Yield to? maturity) A? bond's market price is?$900. It has a ?$1,000 par? value, will mature in 8 ?years, andhas a coupon interest rate of 8 percent annual? interest, but makesits interest payments semiannually.

What is the? bond's yield to? maturity? % ? (Round to twodecimal? places.)

What happens to the? bond's yield to maturity if the bondmatures in 16 ?years? % ? (Round to two decimal? places.)

What if it matures in 4 ?years? % ? (Round to two decimal?places.)

Answer & Explanation Solved by verified expert
3.9 Ratings (641 Votes)
Yield to maturity of a bond can be computed using excel as IRR of cash outflow and inflow during the periods and maturity Year 0 cash out flow is the price of bond ie 900 Cash flow in year 1 through 8 is the coupon amount Coupon amount Face value x Coupon rateCoupon payment frequency in a year 1000 x 0082 1000 x 004    See Answer
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?(Yield to? maturity) A? bond's market price is?$900. It has a ?$1,000 par? value, will mature in 8 ?years, andhas a coupon interest rate of 8 percent annual? interest, but makesits interest payments semiannually.What is the? bond's yield to? maturity? % ? (Round to twodecimal? places.)What happens to the? bond's yield to maturity if the bondmatures in 16 ?years? % ? (Round to two decimal? places.)What if it matures in 4 ?years? % ? (Round to two decimal?places.)

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